Use Low Interest Rates on Loans Now

Use low interest rates now for borrowing

Use low interest rates now for borrowing

Since 2008, lending rates appear to have been in only one direction: they are falling. Meanwhile, lending rates have reached a historic low. The low interest rates mean that it has not been as attractive to borrow as it is these days. Low interest rates are particularly noticeable with real estate loans. Interest rates of around 2 percent are not uncommon for home loans. A turnaround is not in sight in the short term, but experts agree that interest rates will not remain at this low level in the long term. In the medium term, higher interest rates must be expected and it is worthwhile now to take out the desired loan.

This applies especially to long-term loans such as construction loans, which usually extend over a term of 15 years or more. Thanks to the low interest rates, there are minimal additional expenses incurred by the loan. A key reason for the low interest rates, which on the other hand bring tears to the eyes of savers, is the historically low key interest rate of the Best Bank. It enables banks to borrow money almost free of charge and the resulting savings are passed on to their customers through low interest rates.

Low key interest rate

Low key interest rate

The low key interest rate and the resulting low interest rates are primarily intended to further stimulate the economy in the eurozone and avoid an economic downturn. Just a few days ago, Best Bank chief Draghi proved that he continues to throw billions around him. He continues to play in the hands of borrowers and primarily ensures low interest rates with the decisions of the central bank. The Best Bank’s purchase program has been decided, but it remains controversial. Mario Draghi would like to buy government bonds worth 60 billion USD a month until 2016. This means that an almost unimaginable sum of 1.4 trillion USD will flow into the market.

Use low interest rates for debt restructuring

The low interest rates are fundamentally not only worthwhile for consumers who want to take out a new loan. They can also be used for debt restructuring. When rescheduling, an existing loan is replaced with a new loan. This pays off especially when loans have a long term and this results in considerable monthly savings due to the low interest rates.

Bernard Crowley