Borrowers may be in paradise, as the terms of the loans are better than ever. What to keep in mind if we take advantage of current favorable offers?
Although interest rates on loans have plummeted over the past few years, caution is still good. It is worth acknowledging that, although we can easily get what we get, the bank money that needs to be returned once.
What are our options?
For a long time, personal loans were a category that many said no. Mostly because it was characterized by a very high APR of up to 15-20 percent. Today we get personal loans at an interest rate like home loans with much more paperwork, foreclosure, and collateral 5-6 years ago.
These loans can be settled within 3-5 days and the loan amount becomes available. Currently, we are getting a personal loan of 6.9 percent, even without collateral and guarantors.
However, there are 20% THM offers today. There is no question that these are not worth choosing when we find much better on the market.
Another good thing to know: It is not only worth choosing a loan to hang on to one number, the THM. Conditions such as whether or not we need to contract a bank product, how long we can repay it, and whether we can resolve it, are just as important as whether interest rates are changing.
The whole fix is the real thing
Experts warn that fluctuating interest rates are long overdue, which puts customers in a false sense of security. In 2017, people borrowed 45 percent more than in 2016. However, care should be taken if the APR is low at the outset, and if interest rates are not fixed, this may increase over time. And since the downward trend has been going on for a long time, loans will still be pleasant for 1-2 years, but interest rates are expected to rise later.
For this reason, it is worthwhile to take out a home loan with a variable interest rate as well as a personal loan. And if we were to decide on a well-starting, but variable-rate loan, we would have to contract for a longer-term version. In ten years, we will be grateful to ourselves for this choice.