Comparison of building financing models

So our financing corresponds to the 1st model and we are satisfied. BUT we have only financed €250,000, which means our risk after 10 years is low, especially since we also have a building savings contract running in parallel that covers a large part. So even if the interest rate were 8% then, it would still not be a problem for us.

Just calculate the models yourselves as well, what does it look like if the interest rate is 7% after 10 years? Is that still financially feasible? Are children planned…etc. There is so much to consider… so work it all out, calculate it… etc.

So our financing corresponds to the 1st model and we are satisfied. BUT we have only financed €250,000, which means our risk after 10 years is low, especially since we also have a building savings contract running in parallel that covers a large part.

uhm..ahem .. I think the financing corresponds to the first model? But if a building savings contract is then integrated again, that is a completely different financing variant. You cover the risk after the 10-year fixed interest period with the building savings contract. In variant 1, Haus1212 has a loan amount of €220K that will get a new interest rate after 10 years. That is almost your entire loan amount.

What do you mean by cough...;-)
No, seriously, the building savings contract basically has nothing to do with the financing. We could just as well use the money we pay into the building savings contract as special repayments, then I also minimize my interest rate risk since my original loan is paid off faster, and yet we still have the first model described here. Because somehow you have to minimize the risk when the loans mature after 10 years, so either save into a building savings contract in parallel or make proper special repayments or hope that interest rates won’t have risen significantly after 10 years...;-)

How does one find a "private financial advisor"? I don't know any and would be afraid of ending up with a "financial shark".

Thank you and regards
Herbert

Hello Herbert,

How does one find a "private financial advisor"? I don't know any and would be afraid of ending up with a "financial shark".

Feed Aunt Google with "independent financing advisor" or "independent financing broker" and the websites will flood in by the dozen.

Look at the sites carefully - wherever only one bank/institution/insurance is overwhelmingly present, stay far away. For the rest, ask for references.

You can gather information from relevant financing journals - for example Finanztest - you can request information from the consumer advice center, ask around among acquaintances, etc.

Kind regards