Forward loan – up to 60 months in advance to secure interest Berlin, 17.01.2011 – the year 2010 was marked by a particularly favorable interest rates, which was almost the whole year very constant based on starting from the base rate of the ECB (European Central Bank). Builders and buyers have also currently still the possibility to complete favorable financing. But the turn of the interest will come – builders with long-term planning should therefore now take action and learn about relationships and savings (such as E.g. securing low interest rates with a forward loan). Forever there cheap interest rates for mortgage loans even if only a construction financing is needed in the future, so worth a look at interest rates and expert expectations for the near future. It is from the latest foreseeable, again raise the interest rate on appropriate financing. The historical interest rate lows of recent past will forever remain at this level.
The recording “cheap money” by the banks at the ECB will be soon so no longer possible due to the persistently improving market developments. The provided loans will become more expensive then, what will disclose to the borrower any credit institution by higher interest rates. Mortgage interest rates for short-term interest rate bonds are already on the way up, total historical interest on construction money specifically for the longer interest commitments are however still been extremely favourable. There are ways to back up these current low level of interest rates for future mortgage lending and to benefit in the coming years. Forward loan can a cheap alternative represent forward loan is basically nothing more than a classic construction financing by means of an annuity loan – with one important difference: this funding comes only after a maximum of 60 months lead time (the so-called forward-period). So, it is a loan agreement with already frozen conditions for a concluded in the future stress loans. This has the advantage that the current (low) interest rates for the later required loan can be secured. This is always advisable, when rising interest rates are expected.
Of course, it’s not free: depending on equipment (duration of the forward period), loan amount, interest period, and so on this interest security costs a premium. As a rule of thumb can be detained, that a forward loan pays off because this serves only if either the forward period and the interest rate can be kept as low as possible or really high interest rate increases expected which would exceed an appropriate charge. In any case worth an individual examination of the needs for a planned construction financing – particularly in the current situation -. After the request from various credit institutions can be judged then, whether or not the conditions offered are makes economic sense. Important to know: once completed, both borrowers and credit institution on the agreed terms are tied! Conclusion who needs a construction financing in the near future, should inform himself on the basis of the currently still low level of interest rates and the general expectation of rising interest rates on financing by means of a forward loan. So can if necessary favourable interest rates for a future loan “frozen”. Information can be easily viewed on the Internet at appropriate real estate portals (E.g. Immokredit24.com) or obtained from a financial advisor. More information construction interest – interest development, construction interest chart and much more. Secure forward loan – conditions, up to 6 months in advance.