Debt trap real estate loan?
A few days ago, a technical article was published by T-Online, in which cheap real estate loans were considered critical. From the author’s point of view, low-interest real estate loans can become a permanent debt trap. Perhaps some borrowers are now unsure and fear for their financial security.
Due to the low interest burden
Basically, loans that are concluded in periods of low interest rates have a certain financial disadvantage. Due to the low interest burden, the interest component of the annuity (the monthly loan installment) can not rise significantly, which means that the repayment increases only slightly over the years.
As a result, the repayment period will be extended by several years. Anyone who has completed a real estate loan last summer and has set an initial repayment of one percent, would have to pay off the same lending constellation more than 40 years to become debt-free.
The loan terms can be renegotiated
Luckily, this risk is relatively easy exclusively. The pivotal point is the amount of eradication. It is advisable to set a higher repayment, which significantly reduces the repayment period.
Anyone who has agreed to a low repayment can make special repayments – this way, too, a decent loan repayment can be achieved. In addition, the loan terms can be renegotiated anyway in the context of the next follow-up financing.
Mortgage rates have already noticeably increased
If you take out a real estate loan at the present time, you automatically benefit from a higher repayment: Since last summer, mortgage rates have already noticeably increased. Nevertheless, one should secure oneself well now.
For example, it is always good to be able to make special repayments and, moreover, to adjust the repayment installment in the course of financing.