Those who want to move into their dream home need security in the financing from the very beginning. What is the correct mortgage model? And at which bank, resp. insurance the best conditions exist? In choosing the right offer, many aspects must be considered so that the mortgage can also be sustainable in the long term. One of the most important aspects in this sense: is the amount of mortgage interest. First of all, the comparison shows where particularly favorable mortgage interest can be obtained. With MoneyPark you will find the right offer. We provide you with comprehensive advice and accompany you throughout the financing process. Our independence is our strength:
The basis for Best Mortgage Interest: A Comparison of Mortgage Models
The design of the optimal mortgage strategy depends on several factors: What interest expenses can and do you want to pay? Is the level of interest rates, and therefore mortgage interest rates, high or low in comparison? And what is the trend of the general interest market? In an environment characterized by rising interest, another strategy is required than in the case of falling interest rates. Mortgages from various providers differ a lot in detail, but basically, there are three mortgage models, each with its advantages:
- Fixed mortgage: The term of these mortgages is usually 5-10 years. Its big advantage: the mortgage interest is fixed. Compared to the other two models, this equates to a high degree of planning and budgeting security. It is known from the outset how much the monthly expenses will correspond for the entire duration of the mortgage. Since interest rates are not subject to fluctuations, you do not have to charge any additional charges should interest rates rise. On the other hand, however, you will not even benefit from a possible drop in interest.
- Variable mortgage: Unlike a fixed mortgage, a variable mortgage does not have a fixed interest rate. On the contrary, it depends on the market environment and the interest rate trend at the respective bank. These fluctuations can undoubtedly have positive effects: if mortgage interest falls, the variable mortgage benefits. However, the rise in interest rates must also be taken into account. Since the term is not fixed, a variable mortgage can always be rescinded at the agreed maturity and converted into another mortgage.
- LIBOR mortgage: This mortgage is linked to LIBOR. The acronym is equivalent to ‘London Interbank Offered Rate. That is the interest rate at which large credit institutions lend each other money in the short term. The interest rate is adjusted every 3–6 months to the market environment. In times of falling interest rates, this mortgage model highlights its strengths.
Find the best mortgage interest with MoneyPark: we will take care of the comparison
At which lender or insurance institution are the best mortgage rates offered? The market comparison is a very demanding operation for those who want to take on a mortgage. Because it has to ask each bank and insurance company (as well as pension funds) for its offer. Furthermore, many offer have their product range, which is hardly comparable with others. These particular models take into account, for example, the concessions in the case of a new mortgage, ensure a bonus for eco-sustainable buildings or are more advantageous if the children still live at home. Furthermore, if the models can be combined, the situation becomes even more confusing. Money Park helps you to have a clear overview of the market situation.