Mortgages are a big part of your economy, so its important that you choose the right one for you.
When you need to take out a home loan, you are faced with a lot of different choices. It can seem confusing and scary. At the same time, it is very different what kind of loans people are in, and so it can be difficult to ask in their circle. But if you choose the right loan that suits your personal finances and temperament, you can use the interest rate trend in the community to get a better economy.
That’s why we guide you through the three different types of home loans available.
The secure mortgage
Don’t you like to take chances? Would you rather wear a strap and harnesses? Then you have to choose the fixed interest rate on your home loan. That way, your personal finances will always be safe – in return, you will also pay a slightly higher interest rate. Therefore, it is important that you use the conversion right on your mortgages. That is, the interest rates rise and fall, you can convert your mortgages – either to lower interest rates or by raising interest rates to lower residual debt.
This type of home loan requires patience, but it can also give you a upset stomach because your interest rate doesn’t fluctuate and you know exactly what to pay.
The unsecured mortgage
Do you like the excitement and that it goes up and down? Then you always have to take out that loan, with the shortest interest rate adjustment period. It is likely to be the cheapest loan over a long period of time.
But with the price also comes that it is uncertain. It is uncertain both on the price of the loan and on what effect it has on your personal finances.
Over the past 20 years, the interest rate on the 1-year interest rate adjustment loan has fluctuated by 6%. It can be a lot in a small private economy. On the other hand, it has historically been this kind of loan that has been most advantageous.
But it is important to consider whether you can keep up with that risk in your finances or whether it causes you stomach ache and difficulty sleeping.
The medium-term mortgage
If you want some excitement, and if you not only want to have a fixed interest rate, but dare not just have a variable, then you can combine the two options.
You do this best by taking a variable-rate mortgage that you pay off in order to bring down interest expenses quickly and combine it with a fixed-rate bank loan, with a maturity of, say, 30 years, and possibly. interest-only. In this way, you gain security in your finances and allow yourself to reduce the outstanding debt should interest rates rise.
If you choose this solution, you are sure that you are not at a disadvantage, but also that it is not the absolute best solution.