Comparison of financing options - loan amount 430K

2019-06-25 19:44:37

Yes, the local savings bank. By the way, it was also well positioned in terms of conditions.

Then everything was done right. And really never showed any invoices?

2019-06-25 19:58:38

Did you finance with the Sparkasse / Volksbank? What was the renovation volume? The big banks always pay only upon invoice submission

For us, it was also the Sparkasse where we were already customers. Renovation/renovation total of €130,000 declared. We didn't have to submit a single invoice. A DIN A4 sheet with a rough summary of the planned renovation work along with our own cost estimate in advance. The payout was immediate, all at once; after 1.5 years, the Sparkasse employee came for an inspection, ticked it off, and that was it.
Conditions were also top (finance brokers couldn't match the interest rate, all were a tenth worse).

2019-06-25 21:59:32

Then all done right. And really never showed any invoices?

No, not a single one. However, it should be said that I am a civil servant, have experience in renovations, and the volume (which I forgot to mention in my first response) was smaller.
At the end of the renovation, a commissioned appraiser came and took inventory. That was it. Very simple, very uncomplicated. Just the way I like it. And the terms were on the level of other banks.
In addition, there was the option to not have to draw up to €20,000 free of charge. So all in all a good partner for a renovation mostly carried out independently.

2019-06-26 00:47:25

For us, it was also the Sparkasse we had already been with. Renovation/refurbishment was stated at a total of €130,000. Didn’t have to submit a single invoice. A DIN A4 sheet with a rough breakdown of the planned renovation work with our own cost estimate in advance. The payout was immediately all at once, after 1.5 years the employee from the Sparkasse came for an inspection, checked it off and that was it.
Conditions were also top (financial brokers couldn’t match the interest rate, they were all a tenth of a percent worse).

Just a question, what does the bank do if a few customers go to the casino with the money? Never had to submit a photo? Sparkasse transferred the €140,000 to your account?

When was that supposed to have been? It would be nice for other consumers if you named the Sparkasse,

2019-06-26 00:57:38

Good day everyone,

I have been reading along here for a while and now that we are entering the decision phase as well, I would be interested to know how you compare the following two financing options.

The loan volume will amount to 430,000 euros, the fixed monthly rate to 1,500.00 euros, special repayments are firmly planned and in both variants up to 5% of the loan amount annually are possible.

Variant 1: Annuity loan with 15-year fixed interest, nominal interest rate 1.25%, effective interest rate 1.29%

Variant 2: Combination of home savings contract pre-financing (160,000 euros) and annuity loan (270,000 euros)
The savings phase of the home savings contract would last 12 years, the interest rate for the repayment suspension loan for
these 12 years 0.95%, interest rate of the home savings contract thereafter 1.5%.
The interest rate for the annuity loan would be 1.25% nominal interest rate, as in the first variant.

I am simply very unsure whether it would be better to at least secure a part of the loan long-term through the home savings contract financing in variant 2, even though this is of course more expensive overall in the first 15 years, or whether we should rather take variant 1, save the arrangement fee and the annual charges for the home savings contract and prefer to amortize the annuity loan as much as we can.
In variant 1, the remaining debt after 15 years (without calculated special repayments) would still be about 221,000 euros.

I already thank you if someone has an opinion on this!

Best regards, Kate

What costs – especially value-enhancing ones – are opposing the financing requirement of 430,000 euros?

I don’t understand at all how one should evaluate anything here or were you referring to the side issues discussed so far?

2019-06-26 07:15:36

Good morning,

of course, value-enhancing measures offset the financing requirement of 430,000 euros (otherwise, we probably wouldn't do it). We are financing at about 60% of the lending value, as several banks consider the measures to be largely value-enhancing.

However, that was not the point of my question, nor about the "previously discussed side issues."

Our project itself stands, and I did not want to discuss that either.

Since I have been reading here for a while and have also read a lot in the financing area, I was simply looking for an assessment of my existing offers.

And again on the topic of "blank payment" or rather "advance," since this topic apparently stirs up emotions:
Of course, I understand that after the advance, I present the invoice to the bank. I do not want to use the money here for non-financing purposes. It is about having a certain flexibility. And as I already wrote in advance, it would also be the case with our bank that we can get advances up to 10,000 or 15,000 euros, once for the plot, but provided that the invoices are then submitted afterward showing what was paid with it, and that is also how it is planned, this "blank payment" can be called up again.

In any case, I thank those voices that have dealt with my actual question.

Have a nice day and best regards, Kate

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Comparison of financing options - loan amount 430K

HilfeHilfe

Johnny7

Joedreck

Noelmaxim

Noelmaxim

Kate***