The mortgage loan interest rates are always a topical issue, because they are constantly changing. Where the mortgage loan interest rates depend on, how interest rates have developed over the years and how it works with a variable and fixed interest rate we like to explain. Looking at current mortgage loan interest rates? We have placed the current mortgage loan interest rates in an overview.
How is the current mortgage loan rate determined?
The mortgage loan lenders determine the current mortgage loan interest according to the base rate, the risk premium and the profit. The base rate is the part that the mortgage loan lender himself also pays to borrow money for your mortgage loan. The risk premium is a reserve, so the bank covers part of the risk that it runs if you can not pay the mortgage loan. And the profit, also known as the interest rate surcharge, is the part that the mortgage loan lender wants to earn by lending the amount to you.
Interest rates mortgage loan over the years
At the time of writing this article (17-5-2016) the mortgage loan interest rates are historically low. This has not always been that low. The level of mortgage loan interest is always changing. In order to show the erratic course of the interest rates, we will take you back to the beginning of the sixties. In that period there is an increase in mortgage loan interest rates. In the early 1970s, interest rates rose sharply, due to the first global oil crisis. There was a second big outlier between the late 70s and early 80s. That is when the second oil crisis broke out and there was a rising government deficit, inflation and a heated housing market. The average interest in September 1981 was even 13.4%! Now we can hardly imagine that. Fortunately, the interest rate also fell again. What the future is going to do, however, is still guessing.
To protect yourself against the capriciousness of the mortgage loan interest rates you can choose to fix the mortgage loan interest for a longer period .
Mortgage loan interest rates
In general, mortgage loans with National mortgage loan Guarantee (NHG) apply to lower mortgage loan interest rates than mortgage loans without NHG. This is because with these mortgage loans the Waarborgfonds Eigen Woning (WEW) guarantees the mortgage loan. Suppose you can no longer pay the mortgage loan because of a divorce or unemployment, then NHG helps. Should it no longer be possible to pay the mortgage loan and should you necessarily sell the property leaving a residual debt? Then they pay the remaining debt for you under certain conditions.
Low mortgage loan interest rates therefore always switch inexpensively?
Do you now have a mortgage loan with higher mortgage loan interest rates than the current mortgage loan interest rates? Then you can consider leaving your mortgage loan . If the fixed-rate period does not yet expire, you will be faced with penalty interest. The mortgage loan lender misses interest income, the penalty interest is a compensation for this. In addition, you also have to deal with the following costs:
- Mediation costs
- Valuation costs
- Notary fees
- Optional costs National mortgage loan Guarantee
It is more advantageous to only switch if you are at the end (or almost) of the fixed-rate period. Have an independent mortgage loan advisor check for you if the current mortgage loan interest rate is sharp enough to offer an advantage in mortgage loan transfer.
Do not buy savings mortgage loan cheaply
You want to purchase a savings mortgage loan, because you see that the current mortgage loan interest rate is lower than your mortgage loan interest. However, with this form of mortgage loan it is not always cheaper to close. The interest rate of the mortgage loan is in fact linked to the interest rate on the mortgage loan. A lower mortgage loan rate therefore also means a lower savings rate, which means you get less income on your savings. As a result, you have to invest more, which means that the mortgage loan costs do not decrease.
Variable mortgage loan interest or fixed mortgage loan interest
If you take out a mortgage loan, or the fixed-rate period expires, you can choose whether to take out a variable or fixed mortgage loan interest.
Variable mortgage loan rates
With variable mortgage loan interest rates you are not sure about the level of interest. The interest rate may fall or rise each month. As a result, the amount that you have to pay monthly on mortgage loan interest may also be different, which means a lot of uncertainty. Interest rate developments on the capital market are among other things a decisive factor for the level of interest. Variable mortgage loan interest does not have to mean that you always have lower monthly payments than with a fixed mortgage loan rate.
You can decide to set the mortgage loan interest rate when you think interest rates are rising and you want to prevent your monthly payments from rising.
Fixed mortgage loan rates
With a fixed mortgage loan interest you set the interest rates during a discussed period. You can opt for a short period, for example 2 years, or for a long period up to 30 years.
Height of interest depends on loan and value of home
The ratio between the height of the loan and the market value of your home is a factor of the level of interest you have to pay. This ratio determines in which tariff class your mortgage loan belongs. Each tariff class has a certain interest rate. The mortgage loan lender determines the rate classes and can always adjust them. This means that if the fixed-rate period ends, a different interest rate must be paid by changing the rate classes. If this change takes place while you have a variable interest rate, this may mean that you have to start paying the new interest rate from the month after which the change has taken place.
Quotation with current mortgage loan interest
Sometimes it takes some time before the mortgage loan deed passes by the notary, for example because the date of the transfer is still unknown and uncertain. Then it may happen that the passing of the deed only takes place after the validity of the offer. However, this is subject to conditions, such as paying a commitment fee. If the mortgage loan interest rate in your quote is lower than the current mortgage loan rates on that day, then this is unfavorable for the mortgage loan lender. That is why this commission is requested. This means you can still use this lower mortgage loan rate. Interest payments are included in the mortgage loan offer.