Keep an eye on fixed interest rates and repayment rates

A long fixed interest rate is always advantageous if you conclude a mortgage in a low-interest phase and a further decline in the interest rate level is unlikely. You then secure a favorable interest rate for a longer period of time and therefore do not have to worry about rising financing costs as a result of interest rate fluctuations during this time. In principle, the credit institutions offer you a minimum interest period of five years. Of course, longer periods of 10 to 30 years can also be guaranteed. In these cases, however, a higher interest rate is to be expected. A short fixed interest period, on the other hand, makes sense if you conclude your mortgage in a high-interest phase and you can expect interest rates to fall again in the foreseeable future. Then you can benefit from the fallen interest rates again after the fixed interest rate. Another advantage: The shorter the fixed interest period, the lower the repayment installments. Disadvantage: If interest rates rise contrary to expectations, then you have virtually "speculated" and must expect rising costs after the fixed interest rate. In addition, the remaining debt amount will still be relatively high after the end of a short borrowing rate commitment. In addition to the fixed interest rate, you should also deal with the repayment. After signing a mortgage contract, you pay monthly repayment installments to your bank in the same amount. As a rule of thumb, the minimum repayment rate should definitely be 1 %. However, you must then note that a low repayment rate will result in a comparatively long repayment period. In addition, you should also think of the risk of rising interest rates already mentioned above. Due to the long repayment period of your loan, the probability also increases that you have to expect rising interest rates in the follow-up financing. Therefore, the choice of a higher repayment rate is recommended. Of course, this should always be within your financial capacities and in no case limit your living budget too much.