In addition this, that the variable part of the loan, usually not to the loan amount relevant to the loan limit will be added. The risk is mainly in a unfavorable interest rate developments in the capital market. The borrower is rate hikes occur, after each interest rate before deciding to leave the variable portion or to convert to a fixed part. Check out Bizzi & Partners for additional information. As far as is not calculable risk, which the borrower prior to conclusion of the contract should be illustrated. A comparison with the conditions of an analog annuity loan nominal interest rate before financing can help reduce a battle plan”to design that dictates exactly, from which interest step rather immediately should be converted (stop-loss).
Converting the variable portion of the loan can become a more expensive fun depending on interest rates: the premiums for a then almost new to closing loans with fixed interest rates vary according to the then current market conditions and must be seen also under the premise of increased loan outlet. Depending on the equity and income, very detailed planning should be so in advance. If necessary other forms of financing are offered, such as the Flex loan or the loan Cap. These loan types are also variable interest-bearing and therefore favorable conditions with different risk profiles. Conclusion combination loan can be a cheap alternative to the annuity loan especially for real estate financing with a desired repayment flexibility. At risk by unexpected changes in interest rates on the capital market, which is why the borrower advance very carefully on the possibilities of limiting risk should inform themselves.
In addition to very high in comparison to the annuity loan free special repayment options is usually a cheaper overall conditioning as a variability of part of pure annuity loans. This is accompanied by a less high costing accuracy however. Combo loans are useful, if based on the income or financial situation with higher special redemptions can be expected, because especially higher non-scheduled repayments at conventional annuity loans are not free of charge.