# Home loan: move into your own home with the interest calculator

## Money at an extremely low interest rate

The question of when it is worth building your own four walls with a loan is simple. Anyone considering building finance can benefit above all if the interest rates are very low due to the monetary policy of the DLB.

If you have fed the interest calculator with the relevant information and clicked on the “Calculate interest costs” or “Calculate interest” button, the calculator then shows the expected total costs for the construction finance (i.e. loan amount + interest amount).

The borrower has the money at an extremely low interest rate, but after such a short term the remaining debt is still very high. With a loan amount of 100,000 USD and an interest rate of 2.1%, the amount of the remaining debt after 5 years is still over 89,000 USD. After 10 years, on the other hand, you would have paid off at least 23,000 USD.

An important factor for less interest is the amount of the repayment rate. This can be set individually with an interest calculator. Experts recommend low repayment in times of high interest rates, which would be counterproductive in a phase of low interest rates.

The lower the interest rate, the higher the repayment rate should be chosen. In this way, you can significantly reduce the remaining debt in a short time.

## With interest calculator and interest chart for the best loan offer

The interest rates are determined by the DLB and the respective central bank of the states, in our case by the Deutsche Bundesbank. In the past 3 years, interest rates have been at a very low and therefore advantageous level for builders. For builders, it makes sense to keep an eye on the development of interest rates, even if follow-up financing is necessary.

Since July 2015, interest rates for 5, 10 and 15 years of borrowing rates have been falling steadily and in July 2016 were below 0% for 5 years, about 0.3% for 10 years and about 0.6% for 15 years. Since then, they have risen again, but in April 2018 they were still at a low level of around 0.3% for 5 years, around 1% for 10 years and around 1.4% for 15 years.

The interest calculator makes it easy for the building owner to find out which bank offers the best interest for the planned project. It should be noted here that you are based on the effective annual interest rate and do not inadvertently act with the nominal interest rate. This is not as suitable for comparisons as the effective interest rate.

- Our practical interest chart shows you the interest rate development of the past months and years.

- Service charge calculator to put. In this way, a comprehensive picture of your own financial opportunities and the feasibility of building finance is created. At the same time, there is an approximate idea of the additional costs that you have to reckon with.

- In order for an interest calculator to run through all relevant scenarios, it should be possible to apply special conditions in the calculation requirements. As a rule, up to five percent of the special repayments can now be made through most mortgage lenders.

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