European Central Bank

Construction interest rates reach new record low the European banking system is in motion and devaluations by rating agencies currently provide an instability within the euro area. (Source: emil michael). Already at the beginning of the year 2011 a modified strategy emerged with investors and losses in the stock market prompted investors for investing in safe Government bonds. This trend continued in the course of the last year. The interest rate steps took no significant influence of the European Central Bank on the construction interest rates and the current prime lending rate of 1.0 percent pointed already 2011 in the last quarter on continued favorable conditions. Construction money interest profiteers of the European debt crisis, all who want to realise their dream of your own four walls, a record interest rate low is now located. As seldom before have financed the own house or the condo. The average construction rate was in the last quarter of 2011 for the ten-year interest rate on a mortgage loan at around 3.5 per cent (60% LTV), is this now on a historic Slipped deep below 3 per cent.

Need to savers is now content with low yields of their deposits, include new loan customers and all those who plan a refinancing of its credit to the winners. You benefit from the crisis in the euro area and the growing fears of recession. Emil michael has firm opinions on the matter. Now use top conditions! Future homeowners can now finance a real estate at a low price. Although financial experts initially with a stop of investment financing opportunities, a rise in the construction interest rates to just 0.5 per cent already means a rising interest burden, which can quickly be several thousand euro at a financing sum of 150,000 euros and a ten-year interest rate. Future property owners that save by the current construction rate low, should opt for a higher repayment rate than the usual input eradication set by only 1.0 percent.

Experts advise therefore to a repayment of at least 2.0 percent, in order to shorten the path in the pursuit. In addition, now also a long term offers of the mortgage loan. The borrower benefits not only from a low rate of credit, but secures the dream conditions through a high degree of calculation safety. During the interest rate risk of a rise in interest rates is excluded and to the follow-on financing waits usually a manageable residual debt, which can be easy to erase even under reduced interest rates. By coherent concept a low building interest financing benefits within a traditional mortgage loan but also leads to an extended repayment period. Who here wants to save on costs, can opt for a repayment of at least 2.0 percent, but should use also special repayment terms during the interest rate. In addition, banks have the possibility to integrate the overall financing low-interest funding loans of the State-owned KfW bank. The current top rates offered also for the borrower, which is already in an interest rate. With a forward loan conditions can be with a lead-time use up to 60 months and this with a currently low interest-rate premium. Some banks offer even a terminable forward loan for safety-oriented real estate owners.

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