It remains interesting to take out a housing loan. But how do you get the lowest rate? Until today we are flocking to take out a housing loan. And that has not escaped the attention of internet players.
For example, the internet recently launched a home loan that directly competes with other price breakers. But an earlier report from our site shows that with such housing loans you have to pay attention to a number of things. For example, fixed rates that only decrease if you meet certain conditions. That while other are willing to offer you a tailor-made rate. But how can you be sure that you will receive the lowest interest rate?
Visit multiple home loans
Anyone who ends his search for a home loan, loses his chances that he can decorate a cheaper rate elsewhere. To cut interest if you come up with a proposal from a competitor. For example, there are still customers who take out a 20-year loan at an interest below 2 percent. That while the majority of advertise a rate of around 2.6 percent. You can consult all rates on our site.
Significantly reduce the price tag of your home loan if you subscribe to a number of by-products such as fire insurance. But the reality is sometimes situation seems likely to be good. Some use such conditions to, for example, sell you a more expensive fire insurance policy. That is why, since April, lenders are required to include all costs of a home loan in an annual percentage rate of charge. That measure should make it easier for consumers. The cost percentage also takes into account, among other things, the commission for intermediaries, the file costs and also the registration and mortgage rights on the credit.
Interest does not say everything
Also, do not stare blindly at the interest. A percentage of 1.8 percent in 20 years may look nicer than a percentage of 2 percent in 25 years, but that means that you have to pay more every month. For example, anyone who borrows 100,000 USD for a 20-year housing loan pays 2.65 percent interest, or 535 USD per month. Whoever borrows the same amount in 25 years pays an interest of 2.88 percent, or 464 USD per month. That is 71 USD less per month than if you pay the same amount in 20 years. On the other hand, you pay 5 years longer and pay more interest. That is why it is also important to check whether the monthly payment fits within your (monthly) budget.
Choose the correct formula
Finally, it is important to choose the right formula.While a fixed interest rate is clicked for the entire duration of your contract, a variable interest rate is adjusted at fixed times (depending on your contract).
For example, in times of low interest rates it may be more interesting to choose a fixed interest rate. After all, there is a good chance that interest rates will rise in the future. But keep in mind that the variable interest can double as much as possible. If the variable interest rate is low enough, it may in some cases be more interesting than a fixed rate in a lower interest rate environment.