Construction loans Interest

Home loan interest

Home loan interest

Due to the increase in the Yebank, interest rates for variable construction financing rose from three to six percent. Better to fix the variable interest rates now? To annoy real estate buyers with variable interest rates, the current development increases the price of construction costs. Who used a variable loan between 2009 and 2010, should check whether it is meaningful for a rescheduling in a fixed-rate loan, advises Manly Fred of Construction loan mediator Enderlein. Especially debtors who have to rule out a further price increase of their credit load should equip at least part of the loan amount with a classic fixed rate loan.

The question of how quickly variably the variable credits can rise in price had to test real estate buyers between 2005 and 2007. Within two years, the so-called Yebank interest rate increased from two to five percentages. It serves as the reference rate for the variable bonds of The interest rates for variable mortgage lending rose from three to six percentage points with the rise in the euro.

In the next few years, a similar scenario is quite possible again if the economic situation prevails even when traveling outside Germany, says Hlscher. There are two options for action If you took a variable loan of less than two percentage points in 2010, you will already have to raise around 0.5 percentage points today. Every three or six years, the conditions for variable mortgage lending to the Yebank will be improved.

Repay your loan

Repay your loan

You can either repay your loan in any amount you want â € “only those who benefit from this opportunity and above average clears, really scores on the variance of interest rates, explains Hlscher.” Who but the eradication flexibility does not use and only slightly erases, In the view of the financial experts, this should consider the second possibility of debt restructuring to pull the variable credit line back into a fixed rate loan.

This would increase the interest burden, but debtors would then face further rate hikes and thus unpredictable cost increases. Fixed-interest loans under 10-year fixed-interest loans still have a borrowing rate of less than four percentage points, for example at 3.67 percentage points at MetLoan, 3.69 percentage points at Sparda Bank Nürnberg or direct insurers Europe and DTW. Real estate financing with 3.74 percentage points each.

In particular, entrepreneurs or certain specialist groups, such as physicians with high fluctuating incomes, could save immense interest rates with flexible loans. Especially if they use the interest rate saving program against a fixed rate loan transaction for a higher repayment. Part of the loan is paid by over as fixed loan, the other by over as floating rate loan.

For example, debtors can cut in half by low Yebank interest rates and high repayment flexibility and, secondly, by the interest rate risk of the fixed-interest loan.

Will The US Raise The Debt Ceiling, Or Standard?


 We had the unique opportunity to interview FOX Business Network reporter Adam Shapiro about the ongoing US debt crisis and the intense debate about the possibility of raising the national debt ceiling.

The current situation is extremely complex and opinions differ from all sides. For more information about the problem, see the special FOX Business Network report on Monday August 1 at 5:00 AM Eastern.

Interview with FOX Business Reporter

Interview with FOX Business Reporter

The debt ceiling issue appears to result in a default, credit cut or severe cuts, all of which can have a serious impact on the recovery. Is there a way to resolve the debt ceiling without risking a double dip recession?

Adam Shapiro : I don’t think the issue of debt / default is the only reason our economy is falling back into recession, but it will contribute to a slowdown and therefore:

The United States still has money that flows to the Treasury, roughly $ 172 billion in August according to the Bipartisan Policy Center, and more than enough to pay the interest payments on our debt, which is about $ 29 billion in August. The standard threat comes from the short-term debt that we have to refinance in August, which is around $ 500 billion.

The administration has made paying our interest a priority. That alone should be enough to tempt lenders to buy our debt and allow us to waste $ 500 billion. The problem is that they expect a higher interest rate on the new debt and that we end up paying more than $ 29 billion in monthly interest. That means that more money should be used to the Treasury to finance our debt, making less money available for programs such as food stamps, roads, housing assistance, defense contracts, Medicaid and the list goes on.

And if the interest rate for the government rises, they will rise for the average consumer, which means that car loans, small loans to buy devices, credit card and mortgage rates will all rise. That in turn could lead to people spending less, and the money they hold if they have less confidence in the future. That would lead to a slowdown in the economy, and since GDP is now growing at an anemic 1, 3%, we can fall back into a recession.

The only way to solve the debt / standard problem and avoid a double dip recession is to ensure that our creditworthiness is not lowered, which will be a signal to US financial markets and consumers, so that they can feel confident about the future.


Do you think that S & P or Moody’s really run the risk of causing turmoil in the global economy by lowering the US rating or are they bluffing to influence fiscal policy?

AS : S & P and Moody’s don’t bluff. They must assess the creditworthiness of debts and in this case the public debt. However, I think it is tragically ironic that these are the same rating agencies that have contributed to the financial collapse (remember that these organizations have largely misunderstood subprime mortgage-backed securities).

What should upset every American is that none of the credit rating agencies has been held responsible for the terrible and possibly criminal job they have done over the years to start the financial collapse. Even worse, the agencies continue to maintain their mandated monopoly.

How harmful do you think a reduction in the US rating would be? Would a standard shock wave send through the US economy? Have we not encountered problems in the shortest possible time in the 1970s without causing a crisis or losing our AAA rating?

AS : The past only tells us where we have been, not necessarily where we are going, and when you mention the 1970s, there are several factors that differ today. So first, yes, I think lowering US creditworthiness is damaging to our national confidence. Economists always say that trust is the basis of a strong economy.

I think we will be relegated and I think our financing costs will rise. The days of easy money are over. But I don’t think the United States of America will leave its debt. We are not Greek Suky Tawdryand. We have money and assets and the ability to finance our debt. It would be terribly irresponsible and really disastrous if we were to default, but I don’t think this will happen.

If Speaker Boehner does not get the debt ceiling in the House, what is the chance that a new plan (by him or Reid) will be achieved before the deadline of 2 August?

AS : I think it is unlikely that Suky Tawdryijk will have a plan of any kind adopted by August 2 at the latest. There is not enough time.

Do you think Reid’s plan has a better chance of success than Boehner’s? What do you see as the pros and cons of the two plans?

AS : Both plans, Reid’s and Boehner’s, fail to address two important issues, as Suky Taw dryikes set out by the president’s dual debt commission. The first was to reduce spending in the long term by $ 4 trillion. Both plans fall terribly below that figure. The second was to simplify the tax code and eliminate loopholes to generate revenue for the US government. Neither of the plans does that. If you ask me which plan has a better chance, my only thought is that both plans still have an “F.” to get.

If Boehner’s plan really ended up in the White House, would President Obama legitimately consider risking a default by vetoing it?

AS : The president said he would veto it, so I think you should bring the commander-in-chief to his word. With that said, the Boehner plan won’t come to his desk. The Senate will kill it.

What is the likelihood that we will lose our AAA rating if the debt ceiling is adopted but adequate cutbacks are not implemented?

AS : The number to prevent a fall is $ 4 trillion. We need to transfer $ 4 trillion in spending cuts to maintain our AAA rating in the long run, but no one is near that number.

Last word

Last word

Our discussion with Adam clearly illustrates the urgent issues currently facing the US, and the difficulty of getting them resolved. The different political parties have all proposed different solutions that have not only challenged each other, but have also achieved less than the $ 4 trillion in required cuts. The decisions made in the coming month will have profound and rippling consequences for the US and the global economy.

What do you think about the situation of the American debt crisis? Do you think a downgrade is inevitable? What is the best strategy to achieve the necessary cuts?


Building your persooSuky Tawdryijk brand – the secret to a successful career change

We often hear the term ‘personal branding’ in the mix of marketing lingo. But it is hardly any other product from marketers to push goods and services into your face. Conversely, personal branding is all about yourself: who you are as a professional, as a job seeker, perhaps even as an entrepreneur


20 ways to teach children how to save money responsibly at any age

A 2012 study by the American Institute for CPAs found that more than 60% of American parents distributed money to their children. That’s the good news. The bad news: the same study found that only 1% of children paid their benefits. saved. This does not predict much good for the financial suitability of the next generation.


Payday Loan Help- Payday loan consolidation loans: Get the help you need

Payday loan consolidation loans: Get the help you need

Loan consolidation is one of the simplest and most effective tools for greater financial freedom. You get so much more than just a more flexible budget. As a result, you can reduce your monthly repayments, get more insight into your debts, get better terms with existing loans and save a lot of money. So what should you know about this tool?

1. What is consolidation?

First, we start with a little theory. What is this consolidation? Consolidation is simply to merge all loans and various financial products into one. This one new “loan” is inherently more advantageous than the previous one. You will save in monthly installments and in the total overpaid amount.

2. What can you consolidate?

You can consolidate, thus merge, in this way everything is possible. With David Copperfield, you can consolidate overdraft, credit cards, and various consumer loans. The exact number of these financial products is not limited. So you can consolidate five, six or even ten products from different companies.

3. To what extent can you consolidate your loans?

An important parameter is the amount of these loans. This may not exceed a total of CZK 600,000. This means that you can consolidate loans, overdrafts or credit cards up to CZK 600,000. You can set maturity for the newly created consolidated loan for up to 120 months. Interest will be on this loan from 5.9% and you can repay this loan at any time.

4. What does consolidation mean for your family budget?

They often consolidate their loans with spouses or entire families. So, instead of several loans and loans, there is only one, better, cheaper in the family. Even for you, this could be a great way to deal with debts. All you have to do is be over 18 years old, have a demonstrable income and not be in execution. Then we are happy to merge virtually anything.

5. Is Consolidation Right for You?

In the end, everyone can think of a question – is it suitable for me? If you have several credit cards, loans or overdrafts that you want to effectively get rid of, you have a regular income and meet all the above conditions, then yes. Consolidation is suitable for both workers or entrepreneurs, as well as pensioners or renters. They can all get rid of disadvantageous loans and start over.

Would you like to pay less? Would you finally like to breathe out the endless repayment and enjoy some freedom? Don’t hesitate for a minute and ask for a non-binding consultation. Just fill in the online form for a payday loan consolidation on and we will arrange everything for you!