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Glossary of mortgage terms

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Variable loan
DE
Variables Darlehen

The interest rate you pay is adjusted regularly to the current Euribor (Euro Interbank Offered Rate). The benefit of this type of home loan in Germany is that borrower’s loan becomes cheaper when the rate is low. However, monthly financial burden also increases when interest rate rises, thus, borrowers should convert it into a fixed-interest loan in this case. Processing fees may also be higher in this kind of loan compared to fixed-rate loan. This type of loan is particularly suitable for short-term mortgage when Euribor rates are low.

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