I am planning to buy a flat and I can take a 30-year mortgage at either 3.5% pa fixed for 5 years or at 4.1% pa fixed for 10 years. If I take the higher interest rate, the difference in absolute terms over the 5-year period would be around 9,500€ (i.e. what I'd pay extra over taking the lower interest rate).
I am tempted to take the longer fixation term as I think that's a relatively low price for an extra bit of security and while of course it sucks to pay more in monthly installments, I should be able to manage.
The price for paying the mortgage off early (when refinancing) is only up to 2,000€, so that shouldn't be an issue at any point.
What would you do?
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I am tempted to take the longer fixation term as I think that's a relatively low price for an extra bit of security and while of course it sucks to pay more in monthly installments, I should be able to manage.
The price for paying the mortgage off early (when refinancing) is only up to 2,000€, so that shouldn't be an issue at any point.
What would you do?
View Poll