- BenutzernameMoneyland User Questions
- Status Member
- Registriert seit1/27/17
- Beiträge2142
February 21, 2017, 4:30:54 PM
Which mortgage model is the best choice in Switzerland right now: Libor, fixed, variable, hybrid?
Best mortgage type
Here you will find the right answers
About Moneyland Forum
The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.
Show categories
- BenutzernameMoneyguru von moneyland.ch
- OrtSchweiz
- Status Expert
- Registriert seit8/4/15
- Beiträge4002
February 22, 2017, 4:08:53 PM
There is no single best mortgage type for all situations. Which type of mortgage would work best for you depends on your specific needs.
Currently, LIBOR-based mortgages have very low interest rates, but there is no guarantee that rates will remain low.
Locking in low rates for a certain period with a fixed mortgage can make sense if you are concerned about interest rates climbing in the near future.
Variable mortgages are primarily a stop-gap solution. Interest rates are high compared to fixed mortgages and (currently) LIBOR-based mortgages. The advantage of variable mortgages is that they can be terminated on relatively short notice.
More information:
LIBOR mortgages explained
Variable mortgages explained
Mortgages: Bank or insurance company
Mortgages: The cost of terminating a mortgage ahead of schedule
LIBOR swap mortgages: A closer look
