What interest rate constructions are there for mortgages
About the principal amount of the #hypotheek you pay #rente - Yes. The amount you pay to the bank can consist of repayment and interest (linear mortgage) or only interest (grace free mortgage). The mortgage rate you pay to the bank is called the nominal rate. In addition to nominal interest rates, there is also a lot of talk about the actual interest rate. The effective interest rate is the nominal interest plus any costs and the times when it is paid. The effective interest rates are the final #kosten expressed in a percentage for someone who has a mortgage.
- Real interest rate: is the percentage you pay to get the money #lenen - Yes.
- Compensation for inflation: it may be advantageous for the borrower to fix interest rates for a longer period of time in the event of rising interest rates. In most cases, the bank has to borrow the money on the capital market where interest rates rise. This is ultimately passed on to the borrower.
- Risk premium: the mortgage lender runs the risk that the principal amount cannot be repaid. This risk is passed on with a premium to the borrower.
What interest rate constructions are there
The interest rate constructions are there for the borrower to decide what they will do with the mortgage rate. The interest rate for the mortgage can be variable or fixed for a longer period of time. The advantage of a fixed interest rate is that you know what to pay for the upcoming period. If the interest rate increases in the meantime you have an advantage, the interest rate drops then you may pay too much. The fixed interest rate must be closed again after 3, 5 or 10 years. For extending the mortgage with a new interest rate, these interest rate constructions have been devised.
The interest reflection period construction
The borrower may choose the interest reflection period at the beginning or at the end of the interest rate fixation period. If the customer chooses to start the cooling-off period at the beginning of the interest fixed period, the borrower has time to permanently fix the interest. The borrower fixes the interest rate if the interest rate is as low as possible. You can do this if you expect an interest rate reduction in the short term
