Situation to bind mortgages (banks say) -Loans
A number of different banking economists are now advocating that one should tie up their mortgage because there are low interest rates right now. If you look back in time, however, it has been advantageous to have a variable mortgage rate instead, so the question is why should you mortgage your mortgage now?
Today, we are at really low market rates and this is partly due to the situation in the US. Since there is a financial crisis away in the US and it has been decided to continue with measures to stimulate the economy, we here in Sweden have also been affected and the result is low interest rates.
Some different economists think that it is a good place to tie up their mortgage
At least 4 – 5 years and that you can profit from it. However, these economists are linked to the banks and it is no secret that the banks themselves want us with loans to tie them up. The banks are given greater security when they know that we have fixed loans so that we do not leave them and take our loans elsewhere.
It is therefore not possible to rely blindly on the votes that tell us to bind the mortgage. You have to be critical and know that those who advocate this also have a certain amount to gain from just borrowed loans. What you should do is to look at clear facts to assess the situation.
The reasons why it may be good to tie up your mortgage
The reason why it is so good to tie up your loan right now (according to bank economists) is that we have unusually low interest rates now, for example as a result of financial crises and various measures to tame it. This means that we have low interest rates and that interest rates on loans with longer maturities are also quite low.
However, it is unlikely that this situation will last for too long and when the economies in the US, for example, start to settle down a little, then interest rates will probably rise. The general view seems to be that we are starting to approach the breaking point where we stop lowering interest rates and instead start going elsewhere. In other words, if you are going to take out your loan at all, it might be a good way to do it relatively soon.
An individual choice
In addition to factors that affect the interest rate, you should also not forget individual factors that affect how good it is to bind your loan and the duration of the maturity. Of course, you should try to plan so that you intend to stay throughout the binding period and the like.
It is always a choice you have with your mortgage if you should invest in variable or fixed interest rates. It is usually said to be cheaper with a variable interest rate and therefore it is likely to be a cheaper alternative in the future as well, but for those who want a little more security and feel that tied-up loans are good, it can be a good time to commit.