Buy land with a variable loan?

  • Erstellt am 2020-09-28 06:18:41

ypg

2020-09-28 11:55:38
  • #1
Then there are still additional building costs, exterior facilities, carport, paving, and kitchen missing.
 

RiQu2020

2020-09-28 12:17:19
  • #2


If that's the case, I'm of course happy about it! I had read about it several times.

The €250,000 was a fictitious example to understand at all how the conversion from a variable loan to an annuity loan works / what happens there. (I am aware that €250,000 is too low.)
Unfortunately, I still haven't understood it.
I just want to first understand how high the new loan amount is in my (fictitious) example after 12 months when converted into an annuity loan and how much equity capital has been contributed to the financing (which seems to be €45,000).
 

Tobibi

2020-09-28 12:59:21
  • #3
Equity then corresponds to the value of the property minus the outstanding loan amount. In the example, that would be about 45K, unless the property value changes drastically. The new loan is a completely new contract; it is usually not really "converted". You can also sign with a completely different bank, which is exactly the advantage of variable financing: you can easily get out of it again.
 

nordanney

2020-09-28 13:47:14
  • #4
Then read my post
 

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