At the moment, several mortgage-credit institutions announce with 2% mortgage loans. It is a historically low interest rate that may sound enticing in many ears. The fact that interest rates are so low is due to the uncertain markets in Southern Europe, where, among other things, Spain contributes to creating the historically low interest rates.
Right now, however, the price is low on a 2% fixed-rate mortgage loan, therefore you will experience a certain loss of money if you change your loan now. When you change your mortgage loan, you actually repay the old one and replace it with a new loan. Since the bonds are traded at a price, this means that if you make a mortgage loan of 2% now, you will have to borrow 1,052,000 to get the million paid. So the debt on the loan is actually rising. However, there are cases where it can be a good idea – If you want to convert later, for example – But it will usually be a good idea to contact your bank or mortgage company so that you can get a more accurate calculation of your loan.
Right now, 2% loans are offered with a shorter maturity, either 15 or 20 years. If you have a 30-year loan, you will also have to pay more back in installments each month – But in return you will then have completed repayment of your loan within 20 years instead of 30. Do you have a fixed rate 5 or 6% loan, there will often also be an idea to convert the loan to one of the higher interest rates, which can be obtained at a higher rate. MythCredit also believes that the low interest rates on fixed-rate loans will mean that more people choose fixed-rate loans rather than floating-rate flexible loans. So far, only 15-20% of mortgage loans have been fixed interest rates according to MythCredit.
Either way, it is always a good idea to examine your personal finances before converting your loan.