Annuity loan + building savings contract

  • Erstellt am 2011-01-05 18:31:05

Primaora

2011-01-05 18:31:05
  • #1
Hello!

This spring we want to build a single-family house. In total - taking our own capital into account - we still need €250,000.
How is this financing option viewed:

We want to finance €94,000 through a KFW loan, €156,000 through an annuity loan from Ing-Diba, each with a 15-year fixed interest rate. At the same time, but independently of this, we want to pay into a home savings contract with €220 per month, which should be ready for allocation after 15 years. We want to pay the remaining outstanding amount from the loans with the home savings loan, then repay the home savings loan over the following years (depending on special repayments made beforehand, but no longer than 10 1/2 years). According to the calculation of our financial advisor, we should have paid off all liabilities by then. Advantage: The interest rate is fixed until the end - beyond the 15 years - through the conclusion of the home savings contract.

Are there any concerns about this type of financing?

Thank you very much in advance for the help,

Primadora
 

feud

2011-01-07 20:03:18
  • #2
Hello,

we are planning our financing similarly, with the only difference that the building savings contract repays the annuity loan after 10 years.
We have now also decided on this variant because the uncertainty of interest rates in 10 years and the lack of planning security with the classic annuity loan bothered us. That way, we already know how much we have to pay and for how long, and regarding special repayments, we are not limited to 3-5%.
I have calculated various options (quite primitively ==> how much does the borrowed money cost me), and it has become clear to me that it is more or less a gamble; if the interest rates are 3,x% in 10 years, we lose out, but if they are higher... which I assume... it looks quite good.

Since we have not signed anything yet, I am still grateful for suggestions from so-called "financing specialists" or builders who have already completed the whole process!
 

feud

2011-01-09 11:48:44
  • #3
Hello Primaora,

thanks for the link!
Many opinions and interesting approaches, and as so often, the truth probably lies somewhere in the middle... that's why we ultimately ended up with a mixed financing consisting of a home savings contract and KfW. According to today's calculation, we will be at zero after just over 21 years, and with a monthly burden that leaves us enough liquidity for unforeseen events... we will probably be wiser only afterward, so maybe someone who already has experience with this financing model will still get in touch.

In this sense, good luck with the financing :-)

Best regards, Udo
 

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