## The low key interest rates

More and more consumers are currently being given the opportunity to carry out real estate financing. One reason is the low key interest rates, which the Meduim Centrum Bank reduced by 0.1 percentage points just a few days ago. Banks can now borrow money from the central bank at a rate of only 0.15 percent and are therefore able to provide very cheap loans. These inexpensive loans can be found particularly in the area of real estate financing, i.e. in the form of annuity or repayment loans. Interest rates on the one hand are very low, but interested loan seekers on the other hand should not forget to calculate the monthly charge.

## Low interest rates can also represent an interest trap

Ultimately, the low interest rates can also represent an interest trap, because borrowers can generally not secure the low interest rates over the entire repayment period of the loan. It can happen, for example, that the interest rate after the fixed interest rate expires in five or ten years will be significantly higher than the current one and that the monthly loan rate will therefore be difficult to bear or no longer affordable. A tool that can be used to calculate repayments and loan interest is the so-called repayment calculator. With this online calculator, the interested loan seeker can calculate the monthly loan rate at which certain repayment rates and interest rates would lead.

## Customer only has to provide some information

The operation of such computers is relatively easy, because the customer only has to provide some information. This primarily includes the desired loan amount, the term of the loan, the initial repayment and the loan interest rate that the respective bank requires. Based on this information, the calculator can be used to calculate how high the monthly rate will be. For example, if you need a loan of over 100,000 USD and decide to make an initial repayment of three percent, you will be charged an annual charge of just 5,000 USD at an interest rate of two percent.

Calculated monthly, this leads to a comparatively low credit rate of less than 430 USD. This number already shows that it has now become cheaper for many consumers to carry out real estate financing instead of paying rent. One of the advantages of the loan calculator is that the optimal repayment and interest payment can be calculated using various variables. As a result, repayment calculators can help consumers find the right amount.