Construction financing with a low fixed rate

2016-11-15 10:21:39

I see it the same way as HilfeHilfe. Take the long runner.

Looking at the entire term of the loan, we are currently at the point where the financial situation looks the worst.

I don't see it that way, though. You only have one child so far and live rent-free.

I don't believe potential salary increases will translate into a higher repayment rate in the future. People also want to treat themselves and the standard of living increases.

2016-11-15 10:45:13

Yo that’s the typical milkmaid assumption. I see it like lastdrop. The child alone gets significantly more expensive over time and immediately eats up a good portion of the salary increases. Another part is eaten up by inflation, another part by the increasing maintenance needs of the house... and we’re not even talking about rising living standards yet.

2016-11-15 10:54:27

A bit provocative: The respective remaining debts are practically comparable (about 183,000 euros). The question today is whether, with presumably higher interest rates at the end of the fixed-interest period, a follow-up financing will be possible. Whether this occurs in 15 or 20 years, I consider irrelevant. No one knows how high the family's income will be in 15 or 20 years, and no one knows the interest rates at those times.

Therefore, I would choose the offer from Sparda-Bank, as it allows the highest repayment (because it has the lowest interest rate).

If you absolutely want to postpone the "harsh awakening" to 20 years, then take the offer from PSD (again, lower interest rate).

And if you do not trust yourselves(!) to repay at least 2% permanently, then forget it.

Einen weiteren Teil frisst die Inflation

Yes, all correct, but it is precisely the inflation we are hoping for -- assuming that our salary rises with inflation. If it does, we will be surprised by the low installment in 10 years.

2016-11-15 10:57:47

A bit provocative: Practically, the respective remaining debts are comparable (about 183,000 euros). The question today is whether, with presumably higher interest rates after the fixed interest period expires, a follow-up financing will be possible. Whether this happens in 15 or 20 years, I consider irrelevant. No one knows how high the family’s income will be in 15 or 20 years, and no one knows the interest rates at those times.

Therefore, I would choose the offer from Sparda-Bank, as it allows the highest repayment (because it has the lowest interest rate).

If you want to postpone the "hard awakening" to 20 years at all costs, then take the offer from PSD (again a lower interest rate).

And if you don’t trust yourselves(!) to repay at least 2% permanently, then don’t do it.

Yes, all correct, but especially inflation is what we are hoping for — while expecting our salary to rise with inflation. If it does, we will be surprised in 10 years by the low installment.

At such a very low level, I don’t gamble on the follow-up financing but repay like hell. Still, not everyone has understood this.

Problematic are cases where family planning is not yet completed or still planned and the uncertain cash flow (children’s costs, income loss, etc. pp).

2016-11-15 11:03:03

tilge auf Teufel komm raus

You can see that this works best with the Sparda offer. After just 15 years, you have practically paid off the remaining debt that would otherwise be reached in 20 years. And special repayments are possible. The rest depends on income and discipline.

2016-11-15 11:07:52

Normally, with the limited income, I would always say 20 years, but in this case, I would also take the Sparda with 15 years.... I also find the gap between 15 and 20 years very large here. The 15 years feel incredibly cheap for <30% equity.

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Construction financing with a low fixed rate

lastdrop

Tego12

Bieber0815

HilfeHilfe

Bieber0815

Tego12