As a first step, it is relevant to play the competition, that is to say to get information from your banking organization but also from other national or regional banks, brokers, large insurance groups and others. financial organizations.
What are the different types of existing real estate rates?
You want to acquire real estate in 2018 and you are wondering about the types of mortgage interest rates that exist on the market. Here are some answers concerning the most famous:
- The fixed rate which guarantees you a maturity amount that is always stable during the period of your loan but the registration fees are higher than other types of rates
- The variable rate which, as its name suggests, can show interest rate variances throughout your loan but which is, on the other hand, the cheapest because it depends on the ups and downs of the’Euribor index.
- The blended rate which is a mixture of the fixed rate and the variable rate during the period of the loan. As part of it is fixed and the other part variable, therefore, the costs are partially expensive
Here are some tips and aids for the acquisition of real estate that can help to obtain the best real estate rate 2018 :
- The PTZ, that is, the zero-interest loan allows you to acquire a loan without paying interest or subscription fees for either new or used. Acquisition conditions vary according to income and well-defined geographic areas
- Bank interest rates can vary from region to region and save you real money. Indeed, banks are more and more competitive, which explains the differences in rates.
- Anticipating a possible early repayment when taking out your loan can allow you to reduce or waive all or part of the costs and save you euros.
- Renegotiating your mortgage rate can be advantageous in the event of a subsequent drop in the interest rate, as has been the case for the past 3 years. Another financial institution can also buy back your mortgage at a lower rate: this will cost you prepayment fees, hence the interest of negotiating these with your bank when taking out a mortgage.
- Since 1er January 2018 and following the Bourquin amendment, you have the possibility of canceling your loan insurance on the anniversary date of your contract in order to choose the best possible guarantees and to play the competition. This freedom of choice can save you money.
- The repayment term of a loan is just as important as the interest rate because it also contributes to the calculation of the monthly repayable amount.
Ask your financial institution but also other banks for a mortgage simulation in order to play the competition and thus determine the most interesting interest rates for your real estate acquisition.