Research (Penizenavic.cz)
Mortgages  |  July 26, 2012 07:59:51

Variable rate mortgage, who offers it and what are the options?


For many years we have been accustomed to the banks was offered only the standard type of mortgage with the fixed interest rate for several years. Traditionally they are very popular fixation on three or five years, because this allows the cash-flow plan the family budget over the medium term. However, due to consistently low base rates and growing demand for a relatively new type, for a mortgage with a variable interest rate offered by the example of LBBW Bank CZ.

How does it work?

Variable interest rate is always derived from the established market rate, usually one-PRIBOR, plus a profit margin agreed in a fixed amount.

What is PRIBOR?

PRIBOR the interest rate at which banks can provide loans to each other in the Czech interbank market and the amount of which is announced daily by the CNB.

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> change the interest rate mortgage loan is fully dependent on current situation on the financial market, not the will of the bank.   Compared with fixed rates variable interest rate is always lower.  Currently, the client can use very low rates and then, if there were increases in market rates may move to a fixed interest rate, possibly. later vice versa, and use the current development rates.

However, it must be said that the increase or decrease in interest rates is always gradually, not abruptly. Basic one-PRIBOR since 2009 has not changed much, as evidenced by the chart of historical development.


 

with a floating rate mortgage is designed for clients looking for a low interest rate and also waive the fixed monthly installments, ie have a greater tolerance to the flexibility of monthly payments.

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> monthly payment each month is actually changing the way they changes PRIBOR. Therefore, it is a floating rate loan is suitable for clients who have very limited family budget and need a long term plan for accurate monthly cash-flow (ie, clients that have hundreds a month to decide).

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Calculate your mortgage in the mortgage calculator at
http:// www.penizenavic.cz / calculators / extension-mortgage-calculator

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Who decides on floating-rate mortgage, you may now select from the Czech Savings Bank, Mortgage bans, CSOB, LBBW Bank, mBank, Raiffeisenbank, Unicredit Bank and Volksbank.

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Most banks offer both types of mortgages (fixed and floating rate) úvěru.Novinkou annuity repayment method is called linear loan repayment, which came on the market, LBBW Bank   IQ in their floating mortgage.

What is a linear method of payment?

The repayment of the loan consists of a fixed amount of principal repayments and decreasing the amount of interest that is calculated from the principal that the   55px; vertical-align: baseline; BORDER-TOP: 0px; BORDER-RIGHT: 0px; PADDING-TOP: 0px "> decreases faster than the annuity method of repayment.   Linear repayment method makes it possible to quickly repay the principal and the overall savings in interest.

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Example   to compare mortgage loan repayment rate and fixed annuity method of repayment and mortgage loan with a floating rate and linear way of loan:

 

55px; vertical-align: baseline; BORDER-TOP: 0px; BORDER-RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 0px;-webkit-text-size-adjust: auto;-webkit-text-stroke- width: 0px "> Total interest paid, provided that the interest rate throughout the repayment period will not change:


77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; float: none; letter-spacing: normal; COLOR: rgb (0,0,0); word-spacing: 0px;-webkit-text -size-adjust: auto;-webkit-text-stroke-width: 0px ">

 

What are the possibilities of extra payments at a variable rate mortgage?

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> The variability of these mortgages in the case of some banks and partially covered in the possibility of extraordinary payments under favorable conditions, however, the banks providing variable-rate mortgage offers only the Czech Savings Bank, LBBW Bank, Unicredit Bank and mBank

2, letter-spacing: normal; COLOR: rgb (247,148.29); FONT-SIZE: 16px; vertical-align: baseline; BORDER-TOP: 0px; BORDER-RIGHT: 0px; word-spacing: 0px; PADDING-TOP : 15px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Options extraordinary repayments of concessional

Czech Savings Bank

Advance payment is maybe 1 in 12 months and for a fee of 2% of the extra payments.

77px; Widows: 2; TEXT-TRANSFORM: none; FONT-VARIANT: normal; FONT-STYLE: normal; text-indent: 0px; MARGIN: 0px; padding-left: 0px; PADDING-RIGHT: 0px; FONT-FAMILY: Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); FONT-SIZE: 15.55px; vertical-align: baseline; BORDER- TOP: 0px; BORDER-RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 0px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> LBBW Bank 77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> loan can be repaid over 3 years free (partially complete ) mBank

55px; vertical-align: baseline; BORDER-TOP: 0px; BORDER-RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 0px;-webkit-text-size-adjust: auto;-webkit-text-stroke- width: 0px "> mBank

No charge up to 20% of the outstanding principal, 3% of the extra payments exceeding 20% of the outstanding principal

Unicredit Bank

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> 1% of the exceptionally installment payment option to make an extraordinary 4 1 year

-Webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Advantages and disadvantages of mortgages with variable interest rate and mortgage payment with a linear manner

Classical fixed-rate mortgage and annuity method of repayment

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "class = MsoNormal> +   in the event of a significant growth rates in the market is protected from the family budget growth monthly installments;

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "class = MsoNormal> +   Monthly payments are fixed for the duration of interest rate changes;

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "class = MsoNormal> - low interest rates are higher than rates moving;

- if rates fall you can not participate in the current low rates;

- The total amount of interest paid is higher than in a linear fashion with mortgage repayments.

 

IQ Floating mortgage LBBW Bank  (Floating-rate and linear way of repayment)

+   interest rate depends on the situation in the financial market;

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> +  if the increase in market interest rates at any time free upgrade to a fixed interest rate;

+   interest rates offered are lower than fixed rates;

+   total amount of interest paid is less than the mortgage annuity method of repayment;

77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> +   amount of monthly installments over the repayment falling;

- The early repayment of the amount of monthly payments higher than the annuity payment.

77px; Widows: 2; TEXT-TRANSFORM: none; FONT-VARIANT: normal; FONT-STYLE: normal; text-indent: 0px; MARGIN: 0px; padding-left: 0px; PADDING-RIGHT: 0px; FONT-FAMILY: Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (247,148.29); FONT-SIZE: 18px; vertical-align: baseline; BORDER-TOP: 0px ; BORDER-RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 20px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> Move the right direction 77px Arial, Helvetica, sans-serif; WHITE-SPACE: normal; Orphans: 2; letter-spacing: normal; COLOR: rgb (0,0,0); vertical-align: baseline; BORDER-TOP: 0px; BORDER- RIGHT: 0px; word-spacing: 0px; PADDING-TOP: 5px;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px "> filling the market with variable mortgages have slowly started to call for change, and it was LBBW Bank has picked up the gauntlet by introducing an imaginary linear method of payment first. In this case, moreover, was a shift in the right direction and IQ floating mortgage will surely find its fans on the market. introduction of this news yet could not come at a better moment, it is precisely mortgages with variable interest rates that are now in an environment of very low PRIBOR are becoming more and more supporters.It will therefore be interesting to see how and when to respond to this new competition.

Calculate your mortgage in the mortgage calculatorhttp://www.penizenavic.cz/kalkulatory/rozsirena-hypotecni-kalkulacka

Tyto zprávy pro vás vytváří Penízenavíc.cz.
Was this article: 10 | 8 | 6 | 4 | 2 | 0


Last news from the section Mortgages:

28.08.2017  Výstavba bytů v rodinných domech je největší od roku 2009 Petr Rozkošný (Kurzy.cz)
21.08.2017  Co dělat, když nemáte peníze na splátku hypotéky? Petr Rozkošný (Kurzy.cz)
07.08.2017  Jak nejlépe financovat bydlení? Wüstenrot (Wüstenrot)

Read also:

July 13, 2017Evropská komise nabízí čtvrt miliardy korun tomu, kdo bude kontrolovat Google Ekonomický deník (Ekonomický deník)
June 04, 2017Poslanci rozhodují, zda dají ČNB možnost odstřihnout lidi od hypoték Ekonomický deník (Ekonomický deník)
April 19, 2017Variabilní hypotéka může být risk, který má výhody Jiřina Kavková (Bydlet.cz)

Hypotéka s variabilní sazbou, kdo ji nabízí a jaké jsou možnosti?

Diskuze a názory

Na dané téma nejsou žádné názory.


Zobrazit sloupec 
Moner | ISIN database | Weather forecast
Česká verze
Kurzy.cz - Akcie cz, kurzy měn, forex, zlato.
Favorite: Prague Stock Exchange Czech crown Czech economy Commodities Gold Trademarks Prague Weather

Copyright © 2000 - 2017

Kurzy.cz, spol. s r.o., AliaWeb, spol. s r.o.,

ISSN 1801-8688