Now that we are almost at the end of the year and 2018 is in sight, you may have temporarily put the search for a home on the back burner. But it is not such a crazy idea to strike now because interest rates have never been so low before. A mortgage has never been as cheap as it is now. Mortgage interest rates are expected to rise in early 2018. Therefore, at least take out a (new) mortgage in January 2018.
Interest rates have fallen again
Borrowing money for a home has always been very beneficial. Who would have thought that interest rates could not fall even further, it is sorely wrong. Because interest rates have fallen again in recent weeks. For example, you currently pay 1.87% interest for an NHG mortgage if you have the interest fixed for 10 years. Those who go for security can borrow from almost 2.5% interest (20 years fixed). There are not many people who opt for a longer term, but if you lock your mortgage for 30 years, you can do so at an interest rate of 2.96%. You are the cheapest with a maximum term of 5 years. The interest you have to pay is 1.61%. A short term can be sensible for people who expect to move within 5 years.
Fixed for 10 years at over 2% interest in the summer
It only seems so recently, but in the summer months you probably paid more than 2% interest for a 10-year mortgage. In hindsight, however, the interest rate rise did not continue and interest rates fell again.
Reason drop mortgage interest
One of the main reasons for the falling mortgage rates was the tension caused by the FBI’s investigation into Trump’s security adviser. At the same time, the Senate agreed to President Trump’s tax plan. A few weeks ago, this immediately caused a fall in interest rates on the capital markets, including in Europe.