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You have taken out a mortgage a long time ago and are now supposed to renegotiate? You are already a pro! Still, you should keep a few points in mind.
When is the right time?
A mortgage with a fixed duration has to be renegotiated latest at the date of maturity. In the case of a variable mortgage it can be reasonable to change to a fixed mortgage in order to ensure lower rates in the long-run. When you can change your mortgage depends on your current mortgage model and the agreed contract conditions. Variable mortgages have a termination period of three to six months, depending on the provider. The case is different with fixed and money market mortgages. Here there is a duration and therefore the end of the contract is given. It is either not possible to back out prematurely or only against a preterm premium. This renumeration to the bank is usually higher than what you would save due to lower rates. A premature termination is therefore hardly ever worthwhile.
Even if you know a lot about mortgages already, you should once more take a look at the important questions: have your risk situation or your personal circumstances changed? Does this have any effects on your long-term plans, on taxes or old-age provision? The better you are informed, the better your mortgage also matches your personal situation in the long-run.
Your existing mortgage bank will gladly make you an offer. If you have had good experiences with your bank until now, you might not want to change. The new conditions will most probably be better than those of your old mortgage - which is no great virtue in the current rate situation. But don't just accept the first offer from your bank: you should request further offers from other providers, compare them and negotiate with your house bank. And give other banks and insurances the chance of winning you over as a client. It is in any case worthwhile.
Secure the rates in time
You also have the possibility of fixing the conditions up to twelve months in advance. Thereby, the financing price is increased by the forward surchage. This is also called a forward mortgage. In the case of rising rates, such securing can be worthwhile. However, an advance fixing that is longer than twelve months is usually not attractive due to the high surcharge.