Quick repayment with the real estate loan is worthwhile

The purchase of a property is still under a good star in terms of low-interest real estate loans. Still, loans for real estate are quite cheap. However, experts believe that the tide could turn and the interest rates for real estate loans could rise again. Find out how to secure better conditions with a quick loan loan.

Fast-loan loans – so protect yourself from rising interest rates

A quick payday loan is a conventional annuity loan repaid within a comparatively short time. One often also speaks of a Volltilger loan in a quick loan loan. The big advantage of this loan is that the interest rate is fixed for the entire term. A follow-up financing is not provided. If real estate buyers opt for a quick settlement, then they have a high degree of planning security. They determine the timing of the financing itself. The average interest rates on real estate loans with a fixed interest rate of ten years have risen again since May 2015 and currently stand at around 1.76 percent. Interest rates of 1.76 percent on a property loan are still cheap, but no one can say how long this level will be maintained.

As a homebuyer, you can protect yourself against rising interest rates by completing a quick loan loan. Such a loan is characterized by maturities between 10 and 30 years, a fixed interest rate for the entire term and the full repayment of the loan within the term. The follow-up financing is thereby eliminated. Homebuyers can secure their current low interest rates for a long period of time with a quick-loan loan and do not have to worry about rising interest rates on real estate loans. In addition, many banks grant an interest rebate of up to one percent if it is a quick-loan loan. Stiftung Warentest has gained this insight in the context of its random sample for the magazine “test” (08/2015). For homebuyers, a quick-loan loan is worthwhile in many ways.

Fast repayment – high repayment rates

Fast repayment on mortgages - Volltilgerdarlehen

Real estate loans are characterized by high loan amounts and long maturities compared to conventional installment loans . While a difference in lending rates of only a few percentage points hardly affects short-term small loans, a few percentage points of real estate loans can end up making a difference of several thousand euros. Here is worth a comparison of the various loan offers. As attractive as instant mortgage loans are, they are not necessarily suitable for every homebuyer. These loans are not only associated with relatively low interest rates, but also with high repayment rates. To be able to repay a real estate loan within a short period of time, the monthly rate must be set high. For the borrower this can be a big burden.

Here it must be weighed whether the monthly high load fits into the budget or not. Fast loan loans are especially recommended for those with a high monthly income. It must be remembered that if one can no longer afford the credit installment, home ownership is in jeopardy. Finally, if you find that the monthly repayment rate was too high and you want to reduce it, you will incur additional costs. The interest rebate may be canceled by subsequent adjustments. Adjustments are often associated with compensation for the bank or the borrower is offered a new contract with new terms. The fixed interest rate is then no longer given. In other words, there is a risk that the remainder of the money will have to be rescheduled using a more expensive loan.

If you want to use a quick loan loan, you should also have sufficient equity, so that only a modest part of the purchase price must be financed by a loan.

Property loans – Credit comparison of offers

Who wants to finance a property through a loan, should compare the offers in the market. Ideally, not only quick-loan loans are included in the comparison. Other real estate loans with low interest rates can be a real alternative to a Volltilgerdarlehen. Quick loan loans are relatively inflexible and allow the borrower little to no adjustments.

Many banks are ruling out not only changes in installment amount, but also special repayments on a quick loan loan. Suitable are short term, high repayment real estate loans for high income individuals, for whom high monthly installments are not a problem.