Now that interest rates are at a particularly low pace, the loans are doing particularly well in our country. But what should you pay attention to?
To this day, our countrymen flock to the private bank to take out a mortgage loan. The cause is the continuing low-interest rate. Who today takes out a home loan for 25 years can still decorate an interest of around 2 percent. Several other loans are also much cheaper than a few years ago.
For example, you can take out a car loan at a private bank at a rate of 1.29 percent. In any case, it is not recommended to blindly plunge into a credit adventure. If you do not pay attention, you risk a lifelong debt burden.
Blind gaze on interest
To start with, it is important to check how much capital you can invest in yourself. Especially when you want to take out a home loan, your own contribution can have a huge impact on interest.
For example, the majority of a private bank is prepared to significantly reduce the rate of your mortgage loan if you borrow a maximum of 80 percent of the market value of your home loan. The lower the quota, the less the risks the private lender takes.
Moreover, do not just be guided by the interest. Look firstly at the monthly installment. For example, a 20-year rate may look much more attractive than a 25-year rate, but that means that you will have to pay more every month.
For example, those who borrow 100,000 dollars and pay off that debt within 20 years owe the private lender 2.58 percent interest or a monthly repayment of 532.36 dollars. Those who pay the same amount within 25 years pay 2.91 percent interest or 467.56 dollars per month.
Borrow for a purpose
Also, look at the purpose of a loan and let your private lender know that clearly. For example, those who renovate a home and mainly make green investments can get a cheaper renovation loan from various private lenders. Anyone taking out a regular renovation loan at the major private lender today will be offered a rate of 2.7 percent.
But those who meet certain conditions can borrow the same amount at a favorable rate of 1.9 percent. The private lender grants such a green loan to people who renovate at least 50 percent in an energy-efficient way. Consider, for example, solar panels or solar boilers.
The same applies to those who buy a car.
The private lender also offers various formulas for a car loan. Them private lender, for example, applies an annual cost percentage of 2.7 percent for new cars and second-hand cars that are less than two years old. If you buy an ecological car, you will see that the rate drops further to 2.55 percent.
That while those who buy a second-hand car that is older than 2 years see the cost percentage rise to 5.15 percent. Both in the case of a renovation loan, car loan or other personal loans with a specific purpose, the private lender will always request proof of your purchase.
After all, the private lender uses different rates for various loans. Those who take out a personal loan usually see the annual percentage rate rise sharply. Those rates vary between 4.9 and 10.5 percent.