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Allocation: loan repayment
Allocation: loan repayment
Video: Allocation: loan repayment
Video: Allocation of Monthly Installment Loan Payment 2023, February

While mortgage rates were extremely low months ago, they continue to climb as the economy picks up. How should you act as a financier now?


Your home loan will be repaid according to the repayment plan that you will receive when you sign the loan contract. In the loan phase, you can also repay your home loan with capital-generating benefits.

Special repayments

A special repayment is a payment that goes beyond the agreed monthly installments. Financiers can make unlimited repayments on an LBS home loan. There are no fees or prepayment penalties. You can either pay a higher rate monthly or make one-off payments. Those who take out a savings bank loan are best advised to discuss special repayments in advance with their advisors.

Opportunity: Use one-time payments from your employer for extra repayments. Anyone who brings Christmas and holiday bonuses into the repayment is debt-free faster. Even in the event of an inheritance or a severance payment, you can accelerate your debt relief with an extra repayment. Every month you pay off earlier means less interest payments for you.

Long fixed interest rates

Anyone who decides to take out a mortgage loan today should agree on fixed interest rates for as long as possible. It is best to lock the loan in place for 15 years. Use the currently moderate interest rate level for the higher repayment and commit yourself to two percent instead of one percent repayment. How to shorten the runtime and reduce costs.

Forward loan

Experts recommend a forward loan if the fixed-interest period for an ongoing loan ends soon and you do not need the follow-up loan for several months. In view of the currently rising interest rates, a home savings contract is ideal for this. This is how you secure the low interest rates for the future. Talk to your savings bank and LBS advisor about how to use the current interest rate now.

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