Cancel the loan and accept a better offer?

2016-02-05 07:38:10

How did you solve that in your family planning?! Did you take that into account? If so, how?

A financing with more flexibility in repayment was concluded.

Talk to your current bank about your reasons why you might want to change the financing (inflexibility in lowering the repayment rate) and whether something can still be done (e.g. freezing the repayment rate for 3 years but then it can also be lowered, or something like that).

Otherwise, I would look for alternatives; a 30-year fixed interest rate under the mentioned conditions would not be an option for me.

2016-02-05 09:32:16

This is about the following consideration: right now we are still young and can repay a lot. But in 2-3 years we want to have children. Then one salary will initially be lost. For this period, I believe 300€ is simply 300€. With one salary gone, 50% of the income disappears. Okay, there is still child benefit and childcare allowance. But I assume we will have losses of 1400€. And 300€ is already a significant amount.

We don't have children yet, but everyone tells us: children cost a lot of money ;) And for this period, we would just like to have a solution.

I assume that we will neither pay off the loan in 20 years (end of the fixed interest period, so about 90k remaining)
nor do I assume that we will need 30 years. I think we will end up somewhere around 25 years, with special repayments.
The charm is that with the 30-year loan we could also repay the KFW loan after 5 years, and then have an additional 170€ available. After another 5 years, another 170€ could be available. That means after 10 years we would face a minimal rate of 1522€. That's the advantage of the 30-year solution. Here we would combine 2 KFW loans.

The alternative now is:

20 years 150,000€ at 1.78% and 20 years 300,000€ at 2.04% - in mix this also results in 1.89.
Advantage: With a lot of goodwill, we could have already paid off the 150k in 10 or 12 years and would then have a roughly 700€ more relaxed rate, so it would be similar to the 30-year loan. But only after 10 years.

But we want to have children in the next 2-3 years. Hence the consideration.

How did you solve this in your family planning?! Did you take this into account? If yes, how?

I can confirm, children cost a "ton of money" :) We are glad to have had the first child before building the house at least.

Why are you only now calculating with one salary less? Is the "family planning" new? You surely already thought about this with the existing financing?

2016-02-05 11:57:19

We have been calculating with one less income all along. We are probably hyper cautious about it. But that is also because in our circle of friends and acquaintances, there are enough people for whom the financing fell through.

We actually always thought it made sense to build the house first, then have the children ;)

2016-02-05 12:53:50

Our house construction project started before the birth. Construction began shortly after the birth. I definitely cannot recommend that.

2016-02-05 12:57:37

Our house construction project started before the birth. Construction then began shortly after the birth. I definitely do not recommend it.

We also started building after the birth (1.5 years) and it has "only" one advantage: You know the costs...

Otherwise, with a child during planned parental leave, it is very, very difficult and you have to be able to rely on your surroundings. I would do it differently today, but it's no longer possible :)

If you don't take any parental leave, then I would definitely start building after the birth, because then you know and see other aspects both financially and in terms of planning.

2016-02-05 14:23:51

1.5 years is not after the birth :) We also know people who started building the house during pregnancy and practically "at the birth." Wouldn't do that again. Our daughter is almost exactly 2 when the construction started. I think that fits. Although we have zero [EL] anyway.

edit: my [EL] should be limited to smart remarks :cool:

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Cancel the loan and accept a better offer?

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