Switching to a fixed timing variation?

If the fluctuation interest is borrowed, the interest watch is necessary

The fixed interest feels at rest, with what is said however it is understood, after all the interest, does not rise and, the low interest rate continues for a while this way because? If with it does, now the fluctuation interest probably is toku, that it seems that the person who is thought increases.

This time investigation (08 years 7 in object period – October) has zoomed to 35.3% the investigation with financing of housing support mechanism, according to “fact-finding n/a nd of the private housing loan user time”, previous investigation (vis-a-vis 08 years 3 in object period – June) ratio of the user of the fluctuation interest being 26.5%.

Even in during of actually consultation, the demand that at the beginning borrowing with fluctuation, we would like to change to the fixed interest at the point in time when the interest has become the rise aspect, have become many.As for this kind of thought, being very efficient, you think that it is correct thought.However, the movement of the fluctuation interest and the movement of the fixed interest differ.The fluctuation interest starts not to move the te, the fixed interest if from long-term view even a little business recovery is bright, there is a material which rising.

the borrowing at a floating rate initially, if you think you want to switch to a fixed future, and that you always watch the movement of interest rates and long-term economic movement will be asked.

what point is how low interest rates continue

in, and to borrow at fixed interest rates from the very beginning, initially, variable rate, in switching to a fixed interest rate you would from the middle, what deals have either? estimated this, to the expected, is a daunting task. i do not know interest rates may go up in the pace of change is what, to some extent, by the time variable interest rate has been rising, because i considered that the long-term interest rates to rise.

of course, the longer the period of variation of low interest rates, make a change was good to initially, will result in a. however, short period of fluctuation, when you change long-term interest rates had gone up, if that is the, you may wish to reverse a fixed interest rate from the beginning might be nice in the total repayment amount, let’s also understand that.

another estimate of the total repayment amount of floating rate period following page in. as an example, period of floating rate1years, 3years, 5years if it was, what is fixed rate and then switch%try to estimate what will be advantageous if.

period of floating rate1for the year

prerequisite
of floating rate period1the annual, interest rates1.875%without variation in.
the initial interest rate of fixed interest rate is fixed for all periods3%.
3,000million yen30if you borrowed in the year repayment.
if you borrow a fixed period from the beginning all
the total repayment amount 4,553million yen
initially1year 1.875%the borrowing is, if you change to a fixed interest rate and then
interest rates of fixed rate 3.07% in the case of, the total repayment amount about4,552million yen

interest rates after switching3.07%in, repayment amount will be equal to the total from the beginning if you have a fixed interest rate nearly. that is, get more for your money but will pay back the total amount if you can borrow at fixed interest rates below this, if it goes any further interest rate, the total repayment amount would grow.

period of floating rate3 for the year

prerequisite
of floating rate period3the annual, interest rates1.875%without variation in.
the initial interest rate of fixed interest rate is fixed for all periods3%.
3,000million yen30if you borrowed in the year repayment.
if you borrow a fixed period from the beginning all
the total repayment amount 4,553million yen
initially3year 1.875%the borrowing is, if you change to a fixed interest rate and then
interest rates of fixed rate 3.24% in the case of, the total repayment amount about4,552million yen

interest rates after switching3.24%in, repayment amount will be equal to the total from the beginning if you have a fixed interest rate nearly. that is, get more for your money but will pay back the total amount if you can borrow at fixed interest rates below this, if it goes any further interest rate, the total repayment amount would grow.

period of floating rate5for the year

prerequisite
of floating rate period5the annual, interest rates1.875%without variation in.
the initial interest rate of fixed interest rate is fixed for all periods3%.
3,000million yen30if you borrowed in the year repayment.
if you borrow a fixed period from the beginning all
the total repayment amount 4,553million yen
initially3year 1.875%the borrowing is, if you change to a fixed interest rate and then
interest rates of fixed rate 3.45% in the case of, the total repayment amount about4,552million yen

interest rates after switching3.45%in, repayment amount will be equal to the total from the beginning if you have a fixed interest rate nearly. that is, get more for your money but will pay back the total amount if you can borrow at fixed interest rates below this, if it goes any further interest rate, the total repayment amount would grow.

in the above example, variable rate period1years and it, fixed interest rate than now0.1%does not rise even within, in total repayment amount and you will have unfavorable. in other words the prerequisites, break-even point, but would have changed, floating rate and short duration of, no significant effect would be born about the same. this way of thinking, although just one example of many of the available methods of verification, rather than looking at interest rates of floating rate, interest rates of fixed rate %if you try to switch to, is required that you have a guide like that.

(related article)
accrued interest shall mean interest rate fluctuations? (mortgage)

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