Loan interest rates and their impact on expected monthly installments.

Whenever you want to borrow money from a bank, for example to buy or build a property, you have to pay back more than you borrowed in return. This form of consideration is called loan interest.

The amount of loan interest on a loan can vary from provider to provider.

The amount of loan interest on a loan can vary from provider to provider.

You also have to differentiate between borrowing rate and APR. The interest rate also includes factors such as the payment rate, the fixing of the interest or the conditions for the repayment.

According to Section 6 of the Price Disclosure Ordinance (PAngV), the bank must state all factors relating to the interest on the loan, in particular the effective annual interest rate and the costs involved.

Not every borrower pays the same interest. How high these are depends on various factors. The most important are:

  • Amount of the loan
  • Term for the loan
  • Amount of the key interest rates set by the central banks
  • Amount of equity
  • Collateral (e.g. mortgages)
  • Amount of income (borrower’s credit rating)

In addition to these hard facts, loan interest rates are affected by a number of other factors. This includes the specified training, the place of residence, the age of the customer. The specified use or the personal impression of the customer advisor also influence the loan interest.

Secure fixed interest rates.

Secure fixed interest rates.

If follow-up financing is then necessary, the remaining debt is no longer as high. This usually also affects the amount of loan interest to be renegotiated.

The disadvantage of long fixed interest rates is that the bank pays them at a slightly higher interest rate. With the help of our online loan calculator, you can check how differently long terms of fixed interest rates affect the amount of the loan interest offered. A difference of ten years can lead to loan interest rates that are at least 0.5% higher.

Want to fund should look for special offers from regional lenders. Building societies or regional banks are particularly helpful to young families or low-income earners with their dream of owning a home when it comes to lending rates. They are interested in economically promoting and strengthening the immediate area.

  • Thanks to these additional discounts on lending rates, groups of people who are financially poorer can realize their dream of owning their own home.

Find out the loan calculator quickly. The calculator shows the necessary monthly rate at which the potential borrower can already see whether he can pay it over a long period of time. It is also possible to use the calculator to find the best offer with the lowest interest rates.