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    Home loan: fixed interest period and termination

    In the case of real estate financing or construction loans in particular, it is customary for the interest to be fixed in the long term – the duration of the commitment is sometimes also called the fixed interest period or the fixed interest period. In Germany, fixed interest rates are much more common in construction finance than in other countries, such as the United States. If the interest on the loan is fixed, this means that the borrower does not have to worry about changing situations on the financial market because they do not affect the interest rate during the fixed interest period. If the fixed interest period has ended,…