Homeowners are often in debt for years or decades. However, in times of low interest rates, borrowers can get out of debt faster. This is shown by a current study.
Frankfurt / Main (dpa) - According to a study, property buyers can save tens of thousands of euros if they secure low interest rates on follow-up financing. This has resulted in an evaluation of almost 100,000 loan contracts by the Munich-based broker Interhyp. If you pay off a house or apartment, you can be debt-free five and a half years earlier with cheap follow-up financing and save an average of 57,000 euros compared to original plans.
Interhyp, one of the leading German mortgage brokers, analyzed the terms of loans from 2009 to 2011 for the model calculation. Ten-year contracts have now partially expired and give buyers the choice of which follow-up financing they use to repay their remaining debts.
Interhyp compared the scenario of a repayment with the old - much higher interest rates - how much faster buyers can be completely debt free if they now switch to a cheap follow-up loan. It was assumed that the interest rate and rate remained the same until the end of the term.
Thanks to the sharp drop in interest rates, borrowers could be debt-free much earlier than planned with the first loan, says Interhyp. "It is crucial that after the fixed interest period expires, optimized follow-up financing is concluded, possibly also by changing the bank." The interest on contracts from 2009 to 2011 averaged almost four percent, while around 1.5 percent was now expected for the complete payment of the remaining debt. Many people are not even aware of the time and money saved, said Mirjam Mohr, head of private customer business at Interyhp.
Interhyp communication
