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Tuesday, February 11, 2025

Interest rates and loan installment. When will they fall? Analysis of Jarosław Sadowski

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The interest rates have not been changed once again. It is not excluded that their height may soon change. Jarosław Sadowski from Ranekomat.pl points out that the timely contract market provides for a 0.75 percentage point in the feet this year. Such a scenario would reduce the installment of the average mortgage by PLN 196.

Jarosław Sadowski points out that although changes in the WIBOR 6M rate suggest that in the next 6 months interest rates Also, they will not change, the time market provides for a 0.75 percentage point in this year.

Read more about the MPP decision: There is a decision on interest rates >>>

Will loan installments fall?

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“So it seems that we will see the discounts only in autumn. The decrease in the feet by 0.75 pp. Would reduce the installment of the average mortgage by PLN 196. These forecasts make many people wonder whether to postpone the moment of purchase In turn, those who plan to buy in the near future are cheaper and more easily available.

How will loan installments change?Ranekkomat.pl

Sadowski adds that “many people repaying mortgage loans are waiting for interest rate reduction.” “However, they must be patient. The MPP has not changed the level of interest rates once again. WIBOR rates have not changed more,” emphasizes the expert.

“Analyzing the changes in the WIBOR 6M rate level, one can get the impression that the moment of reductions moves away. While in the first half of December the WIBOR 6M rate dropped to 5.77 percent, it now increased again to 5.81 percent. So it looks like The fact that banks do not expect reductions in the next 6 months.

“The good news is, however, that the term for the interest rate on the interest rate predict that this year the feet will fall by approx. 0.75 pp. In the case of an average loan for PLN 400,000 per 30 years, granted in January 2021, The interest rate reduction by 0.75 pp.

Is it worth waiting with a loan for a reduction?

The expert notes that while people paying off the loans are nothing but waiting for discounts, in a more complicated situation there are those who are just planning to take out such a loan.

“They have to decide whether to take out the loan now or wait for the discounts, and if you wait – how long. In addition, the question of whether to choose a fixed interest or variable interest. When it comes to the moment of taking a loan, it is crucial whether it The person found a property that meets his expectations and is in the budget.

How will creditworthiness change?Ranekkomat.pl

“Sometimes, however, you can find an interesting property, but there is a bit of creditworthiness that such a person can afford to buy. In such a situation, the decisions can be put down until foot discounts can help. A reduction by 0.75 pp. For the available amount of the average loan with 400 will increase the available amount 000 PLN to 431 529 PLN.

Variable or fixed interest rate?

Another important issue is whether to decide on variable or fixed interest.

“The latest NBP data shows that the average interest rate variable for loans paid in December was 0.5 pp. Higher than the fixed interest rate. In the case of an average loan at PLN 400,000 at 30 years 7.37 percent) will amount to PLN 2,761, and with a variable interest rate (of 7.9 percent) – PLN 2,907.

However, he points out that “if the interest rates drop by 0.75 pp., The situation will reverse and the loan installment with a variable interest rate will be 60 PLN lower than for fixed interest rates.” “This difference may also deepen if the feet continue to fall in the following years” – predicts the expert.

“However, it should be added that by choosing a fixed interest rate, e.g. for 5 years, you can refinancing the loan after a year or two, if the interest rates drop. Thanks to this, there are two reservations. First, the automatic reduction at the variable interest rate is much more convenient than refinancing. or wait a few years to update the interest rate, “explains Sadowski.

The expert explains that “in simplified terms, it can be said that permanent interest rates should be chosen by those who are either ready for a loan refinancing several times, or agree that their installments may only fall after a few years after the interest rate reductions.” “It is also a solution for those who care about the constant height of the installment in the long run,” writes the expert.

“In turn, the variable interest rate is provided by a convenient, because automatic rate drop in the case of nights rate discounts. Its disadvantage is that the installment is initially higher and it is not known exactly whether and when it falls, because the forecasts do not always work. installment growth if the feet unexpectedly began to grow instead of falling, “comments Sadowski.

Source of the main photo: Shutterstock



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