The interest rates are low, but a loan repayment is not always worthwhile. Especially since a few special rules are to be considered, a termination of the old contract, for example, is not as easy as possible with a installment loan. Especially with old loans, a rescheduling is almost always allowed – and mostly useful.
5 important facts:
- Loans without mortgages are always convertible
- Special rules for credit with mortgage
- Consider the cost of debt restructuring
- Find cheap offer
- Choosing fixed interest rates for new loan correctly
What is still to be considered when rescheduling a small loan, you will learn in our guide on building loan debt.
We offers a special housing loan for sums under 50,000 euros. For this, no entry in the land register is necessary, according to the normal rules apply here as for a installment loan.
A residential loan without a registered mortgage can therefore be terminated at any time. However, the Bank may demand a prepayment penalty of up to 1.0 percent of the remaining debt, with a remaining term of less than one year 0.5 percent.
Credit Plus or even the team bank with the easyCredit limit themselves to installment loans, because they are easier to settle because no land register entries or estimates of the value of houses are necessary. Among the direct banks, it is above all the universal banks such as our bank that also offer construction loans.
The alternative when it comes to building loans are specialized financial advisers such as Dr. med. Small or Interhyp. They usually also offer advice, often directly to the customer. Depending on their personal situation, they then choose the cheapest among the offers from several banks. Interhyp was voted best mortgage lender by the magazine € uro am Sonntag for the tenth time in a row in 2015.
Interest-free loans, some of which the Federal Minister of Finance receives, are not to be expected for real estate loans.
However, a rate hike would have to be significant to make up for the difference of around 0.5 percentage points, which is currently more expensive than a five-year loan with a ten-year rate fix. Because the residual debt is already lower in five years than it is today, the higher interest rates then apply only to a small part of the original loan. In addition, more can be redeemed by the lower interest rates, which also reduces the interest burden.
However, a longer fixed interest rate gives security. Therefore, it is above all an individual decision whether one is willing to pay the clear interest premium for more security.