Table of contents:
Video: New advantages of the living giant: Get there earlier
If tax savings are added, the amount increases further. Best of all, the family not only saves money, it also saves time.
"Thanks to Wohn-Riester, we are then debt-free at least a year earlier, " says Leon Hart. The family father is most pleased that he is not helplessly exposed to future interest rate developments: "I was afraid that interest rates would have increased significantly if I had to adjust my financing." Leon Hart now knows from the second tip from his financing expert that there are also forward conditions for financing with Riester home savings contracts, meaning that he can have good interest rates fixed in advance.
For most state building societies, this can be done up to three years before the fixed interest rate expires, explains Ulrich Berghoff, finance expert at LBS West (see expert tip). There are no costs until payment is made. Even if Hart's fixed interest rate runs until 2015, he can already get his Riester home savings contract under one roof. His conclusion: "This is simply awesome."
Financial Compass: prepayment penalty
If you want to repay a loan early with fixed interest, you can only do so under certain conditions and with the consent of your bank, for example when selling the property. For this he has to pay a prepayment penalty. This is due to the fact that the bank that refinanced the loan incurs a loss. If the fixed interest rate runs for more than ten years, the loan can be terminated anyway after ten years.
Check the calculation For a loan that comes from a high-interest phase, it can still be worth replacing it early with a cheaper contract. That depends on the concrete interest savings. Talk to your LBS advisor about this.
In this post you read:
- Save smart, pay off faster
- Get there earlier
- Expert advice