The Leobank mortgage is known as a home loan or as a mortgage loan. Several options are offered to finance the purchase of a home. This may involve buying an existing home or a new-build home. Files are handled personally by an advisor to the lender. It is also possible to refinance an existing credit. Or to use temporary financing if there is a sale of real estate. There are several advantages associated with the various Leobank mortgages. The options vary from a fixed-rate mortgage loan to a variable interest rate.
Fixed or variable interest rate
The Leobank mortgage with a fixed interest rate offers security for a long time. There is clarity about the interest rate throughout the term of the loan. That is certain. Based on this formula, there is clarity from the start about the total costs of the home loan. With a variable interest rate there is less certainty, because at this interest rate there are fluctuations. However, the fluctuation can occur both up and down. This option is ideal if you want to take advantage of the low interest rate at the start of the mortgage. The variable interest rate is then lower than the fixed interest rate at the start of the mortgage. In that case, it must be taken into account that fluctuations in the level of the variable interest rate may occur. Naturally, this must also be financially absorbed.
Semi-variable interest rate
You can also opt for a semi-variable interest rate. This involves the necessary stability on the one hand and a fluctuating character on the other. With this option, the interest can remain fixed for a predetermined term. For example during a period of 10 years, 15 years or 20 years. At the end of the determined term, there is a variable interest rate every 5 years.
If a choice is made for a Leobank mortgage with a variable interest, then there is a possibility to take advantage of a variable term. The term can be extended as soon as the interest rate rises. This offers the advantage that the monthly repayment can remain at the same level. If the interest rate falls, the term can be shortened, while the monthly costs also remain at the same level. Incidentally, the choice for a variable term is only possible if there is a credit with constant monthly installments. This type of repayment has a classic formula. Part repayment and part interest are paid monthly, which is calculated on the outstanding capital. The amount of the interest to be paid then decreases over time because there is a reduced outstanding capital. Incidentally, there is also a Leobank mortgage in the form of a bridging loan.