Average rate 30 years fixed 3%
At the moment, the average rate for a mortgage loan with extremely long fixed-rate period of 30 years is just over 3%. And there are certain providers where you pay only 2.6% interest. That is what Hypotheekshop reports.
Why do long-term interest rates fall on mortgage loans?
Why do interest rates fall on long-term mortgage loans? That is because the interest rates on the capital markets are getting lower again. This allows banks to buy cheaper savings. Incidentally, the interest rates for the slightly shorter fixed interest periods are still relatively high. At least, higher than that for the longer fixed-rate period.
A few tense difference in monthly costs
If you take a fixed-rate period for your mortgage loan of 30, 20 or 10 years , the difference in monthly payments can be a few tenner. It does not make much difference how long you keep the interest rate fixed.
Do not immediately set your interest too long
Are you planning to buy a property soon, or to convert your current mortgage loan into a new mortgage loan? Many experts point out the dangers if you want to opt for a maximum fixed-rate period. After all, you are really stuck with that period. If you intend to relocate within a few years, choosing a long or maximum fixed-rate period will make little sense. Choose a fixed-rate period that suits your future plans.