Since the state froze support for home savings funds, not many have been left hanging in the air with their ongoing contract and unclear terms. And there are still some who are trying to make the most of today’s LTPs.
The good old days have to say goodbye
Let’s see what the current home savings offer? Less spectacular than the older options. The 30 percent state aid added to the money paid was not reduced, but abolished with noble simplicity. This was the plus that made this form of savings stand out, and it was stable and far beyond government securities, for example.
There is no such advantage today, although there is a 5% interest bonus, but there is a 1% opening fee. This results in a very minimal 0-1 percent return over a 10 year maturity. However, what is offered along with it is a loan that is available for maturity, which at the time is promised to be extremely beneficial.
Is it worth it to apply for extra credit?
A tricky solution is worth it right now
- take a loan
- open a lot of LTPs
- and in the end, to replace existing loans with that then extremely cheap credit.
But according to the experts’ calculations, we do not win so much, it is easier and more profitable to simply get a good loan now, because we can make a lot of good offers.
APRs are currently 3.61-6.99% for 5-year fixed-rate loans and 4.39-6.41% for 10-year-olds. And by the way, we get money right away.
Keep in mind that the shorter term a loan is worth, and you will pay less to the bank. In addition, if you do not want to face “lost” interest after 5 or 10 years, choose the fixed rate option. For example, for a period of 10 years, a fixed 20-year loan can be obtained on very, very good terms, if we meet the credit assessment.