mortgages home loans

Posts Tagged ‘long-term-loans’

Present or future property owners of the information was the evening of Monday Uzwil FDP in the hotel Uzwil.

With support from the St. Galler Kantonalbank organized the FDP Uzwil information regarding the region development in building a house and interest rates. The second part presented questions about the budget Mayor 2011th

For once, this was the budget of the municipality Uzwil the FDP is not in the foreground. To the General Assembly on Monday President Ralph Wyss, the emphasis was placed on the house construction and renovation and development of the interest rate front for the mortgage. The budget for 2011, the village was subsequently treated in a brief question and answer session to address the mayor Werner Walser.

No interest rate increase for housing construction in sight
For competent information on regional development of construction activity and interest rate trends as well as on financial issues in house construction Uzwil the FDP had invited two specialists of the St. Galler Kantonalbank Uzwil. Bank manager Bruno Colle and customer service Daniel Schmidli gave an overview of current developments and funding recommendations for investments in housing construction.

Bank manager Bruno Colle pointed to on the basis of statistics that interest rates on both variable and fixed mortgage evolved in a similar context. Appealing for a building decision today is the deep interest rate by 2% for fixed mortgages, while the variable rate was higher than 2.5 percent. On the situation regarding construction activity is given by Colle for the region a peaceful development. Was clearly visible but the rising price of houses, which are the regional but significantly lower than the Swiss average. Colle further pointed out that it is worth thanks to contributions also support renovations. Regarding interest, had a low risk of inflation in sight, but a moderate rise in interest rates in 2011 is expected.

The St. Galler Kantonalbank operates according to customer advisor Daniel Schmidli a conservative financing. Thus, the first mortgage to a maximum of 66.6% invested, with the second mortgage provided for repayment could take up to 80%. Observed after Schmidli further that the sum of interest payments, repayments and maintenance at the property owners a third of their income does not exceed. Longer term, with interest of 5% for the 1 Mortgage to be expected. For a balanced interest burden would be discussed via staggered mortgages.

Uzwil with mediocre control force
To questions from the audience, Mayor Werner Walser presented regarding the 2011 budget, which is coming up for debate. Walsh pointed out the good level of ability to pay in Uzwil, which lies just below the cantonal funds. In Uzwil there are certain burdens on average, they included the schools and sports. The school attested Walser but a highly cost-conscious attitude. Under the cantonal means moving the social field, in managing the Uzwil show even anorexic, how Walsh put it. This will be whether the growth and the increased duties will soon have to change again.

Transport development was Walser noted that congestion in Uzwil also occur in the future propagated. Tempo 30 traffic calming will also continue. Uzwil was about to pass the Gupfenstrasse but in the best locations for the relief center. As the current focus Walser called the centralization of the administration.

Concluding, the party president Ralph Wyss down again once the duties of the parties that they were working not only to promote politicians, but also for the control of the policy. A membership can be based on the passive contribution support the current policy of the FDP.

In the current very low mortgage rates, it is useful to close loans with a fixed interest rate as long as possible. The classical rate fixation period of 10 years applies only in a few cases, as recommended. Most borrowers will need more time to repay their loans in full. Because the probability that in 10 years are higher interest rates, measured relatively high, it simply makes sense to choose a longer fixed interest rate. Especially since the design is relatively simple: More and more banks are starting to offer fixed interest rates of 20 or even 25 years.

Prospective borrowers are careful though. Often they dare not approach these fixed interest rates. In essence, two arguments are listed. First, reference is made to the interest rate advantage that comes a brief fixation with it. The truth is: shorter fixed interest rates actually lead to lower interest rate. However, the risk of short interest commitments may not be disregarded. If you already have a second mortgage is due in 10 years and then interest rates have risen to only around one percent, the total funding significantly more expensive. They also argued that interest rates rise much more clearly, so that some borrowers may no longer are able to lift their funding.

The second reason, the possibility is mentioned that the mortgage rates in 10 or 25 years could be less expensive. This possibility is certainly, is thought to be unlikely. It also means a long fixed-interest not to use this opportunity can not. Each borrower has the option to get off a loan after 10 years of operation – that is guaranteed by a statutory right to cancel.

Consequently, it should in most cases simply make more sense to opt for a long fixation. The high level of security by the long-term interest rate advantage speaks for itself – especially since the law provides for early termination for sufficient flexibility.