Bullet loans & annuity loans combined - sensible?

  • Erstellt am 2019-07-28 18:22:25

Kili1987

2019-07-28 18:22:25
  • #1
Hello team,

we have received an offer from a small, local bank for the financing of our new build in 97421. Here are the details:

Total volume: €550,000
Loan needed: €350,000
The rest is equity (land already paid for - €86,000) as well as cash.
The new build is a self-occupied single-family house in KFW55 standard.

Our wish is to secure the low interest rates for as long as possible, have a special repayment of >=5%, and have a monthly burden of €1,400 in the normal case. Currently, we expect to be able to make special repayments (see amortizing loan below).

We were given a construct of 3 different contracts:
1. Bullet loan €100,000 based on KfW credit with 0.75% interest + Schwäbisch Hall building savings contract.
16 years and 7 months. Fixed effective annual interest rate for the entire construct: 1.18%

2. Bullet loan €150,000 based on Schwäbisch Hall building savings contract.
Term: 21 years and 3 months. Fixed effective annual interest rate for the entire construct: 0.97%

3. Amortizing loan €100,000 including 10% special repayment
Term: 9 years and 5 months. Fixed effective annual interest rate for the entire construct: 1.57%

The total costs for all three contracts and a maximum term of 21 years and 3 months amount to €35,003.77. After this period, the €350,000 will be repaid.
Provision interest is 12 months without additional interest on all three contracts.

My questions to you:
- The construct of 3 contracts with different terms and repayment amounts seems somewhat confusing to me. However, at first glance, all our wishes seem to be fulfilled, and after 10 years I can anyway redeem and reschedule any contract, right?
- Can someone find a comparable amortizing loan that offers similar conditions (total costs, interest security) with our figures - according to our repayment plan it should already have an interest rate of 0.95%, which has not yet been offered to us.
- Other assessments?

Many thanks!
Kili
 

Kili1987

2019-07-28 18:38:36
  • #2
- I have followed your posts in several forums and think you might also have one or two tips here or possibly even an offer up your sleeve?
 

Fuchur

2019-07-28 19:22:40
  • #3
The only thing that comes to mind is... maximum confusion or maximum commission. Are you sure the numbers are correct? A quick calculation should show that the monthly rate is well over €1400, or the terms don't match.

Just the logical check alone: Your components have 1.18%, 0.97%, and 1.57% and thanks to final maturity, no amortization effect. And yet it's supposed to beat an annuity loan with 0.95%? Something doesn't add up.

A 15-year loan should be available at under 1% with those numbers. That would roughly match your terms and rates as well.
 

guckuck2

2019-07-28 19:27:48
  • #4
The information is incomplete to validate whether the 350K€ is actually paid off and the total costs are correct. But if both are the case, it looks very attractive in my opinion.

Alternatives
1) Full repayment over 20 years at HVB at 1.0%, but the rate would then be 1600€.
2) Annuity loan 15 years at 0.9%, e.g. HVB or Degussa, with a 1400€ rate and about 130K€ remaining debt. That is manageable.
 

Tassimat

2019-07-28 19:34:30
  • #5
Did you include the full special repayment each year in your calculations? How else do you come to an ambitious 9.x years?
 

Kili1987

2019-07-28 19:47:08
  • #6


Sorry – I forgot here that the annuity loan is actually paid off in 9 years and 5 months. That means we calculated with special repayments currently (at our request, as the financial situation allows it).

In the first 9 years and 5 months, the calculated monthly burden is:
€2002
In years 10-16: €1373
In years 17-21: €682

Over 255 months (total term), that averages a monthly burden of €1491.
But I also had the feeling of confusion and commission and am now looking for the catch.
 

Similar topics
07.09.2015Opinion on Financing Wonnigster or Annuity Loan16
16.09.2015Home bank financing, building society saver, repayment11
28.11.2015Building savings contract with advance loan versus annuity loan13
17.02.2016Loan with annuity loan and 2 linked building savings contracts47
22.06.2016Is a TA loan sensible? Interest and loan offer are okay13
04.09.2016Question about the effective annual interest rate50
27.06.2016Building savings contract or annuity loan - final decision!45
18.01.2018Annuity loan vs. home savings contract - comprehension questions47
28.05.2018Annuity loan vs. building savings contract 300k loan10
27.06.2018Annuity loan rejected, alternative?17
04.07.2019TA loan with building saver - read a lot, yet did not find the catch.13
04.11.2019Ongoing home savings contract regarding special repayment and allocation maturity18
04.12.2019Annuity loan or Riester home savings contract?10
06.05.2020Financing offer HVB vs. Allianz18
28.08.2020Home financing with interest loan and Riester or without Riester95
25.04.2021Provision interest vs. interest surcharge - financing offer12
15.12.2022Follow-up Financing 2030 Prepare Now Building Savings Contract/Special Repayment/Fixed Deposit64
22.03.2024Home purchase financing despite high interest rates?24
17.01.2025Financing offer single-family house including building savings, experiences25
06.01.2025Special repayment for rented property19

Oben