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August 13, 2017 Comments Off on European Central Bank

The development of loan interest rates was positive for people interested in real estate over the past few years. While the times on interest rate loans in recent years and times were are the interest of loans for real estate over the last years steadily declined and fell in the wake of the financial crisis to a historic low. How have the interest of the loans in the real estate sector evolved? Particularly in the area of real estate financing what looks like the development of interest rates and what interest rates can be expected for the near future is always important for borrowers and potential borrowers. Taking on a mortgage at an opportune time, as many thousand euros over the years can be saved. Learn more at this site: Shimmie Horn. Therefore, the customers of course precisely in the area of real estate credit trying to get very favorable loan interest rates.

Generally, the development of loan interest rates for home loans was gratifying for the borrowers and Kreditsuchenden in recent years. About 20 years ago, you had to have an interest rate as a borrower on behalf of a construction loan pay percent of about ten, if you wanted to use such a credit for the financing of real estate. Since that time about 20 years ago the interest on loans has fallen but almost constantly. Especially the interest rate development of in recent years has been very positive for the borrower. So you had to pay six years ago for example have an interest rate of an average 5-6 percent for a mortgage loan. Today, the interest of loans for real estate are sometimes only at three per cent depending on the type of loan and the duration of the interest rate. The development of loan interest rates has led in recent years, that early 2010 the interest real estate loans like never before are currently so low.

What is the cause for the development of loan interest rates? The main reason for the loan interest rates are falling for years in the real estate credit, certainly, is that the European Central Bank (ECB) has continuously lowered interest rates years in the last 2-3. Since the changes of interest rates banks adjust interest rates for loans, which had in the past Years means that the loan interest for the area of real estate loans have decreased more and more. But looking something in the future, so you can assume currently relatively high security, that this interest rate developments will continue not so, but that loan interest rates for home loans will again rise in 2010, or at the latest in the next year.

Tags: real estate & broker

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