Error in financing?

Hello,

I have a question about a sample calculation of a financing through Postbank, which we received today without obligation from a prefabricated house provider. I think a careless mistake might have occurred since it was done only with a pen and calculator – on the other hand, the lady seemed very experienced, and I cannot imagine someone miscalculating.

The alternative to miscalculating would be "concealing" a later increase in the installments, which of course would be a bit sneaky.

I am asking here because I will earliest get feedback on Tuesday, and maybe I am overlooking something:

It is about financing 405k – which is divided according to the following blocks as follows:

I) KFW loan of 100k – 1.5% interest – for 20 years. After that, there is still an open sum of 33k with a currently unknown fixed interest rate. But you could still secure that. Calculated with a constant rate, a full repayment after another 10 years, so a total of 30 years – monthly installment 355 euros.

II) Special condition loan from the cooperation between BHW and house provider: 100k, 1.35% interest for 15 years, the following 15 years at 2.35% – monthly installment 265.

III) Remaining sum as loan – 205k – 1.9% interest for 15 years with 1.8% repayment, monthly 633 euros – after 15 years also 2.35% interest.

That is a total of 1,253 euros monthly with the statement that after 30 years you are completely done. From my point of view, that only applies to I) – for II and III that unfortunately does not fit at all. If I have not miscalculated, both last 37 years with a constant rate.

Even if the higher interests cause the installments to rise somewhat, it does not fit with 30 years...

The amount felt low to me when calculating, and I also asked twice if you are really done after 30 years, but I did not explicitly ask if the rates increase at any point – but that should have been communicated proactively? Unless it was to lure you in and you only get this info when it comes to the contract etc.

Just these 1,253 euros WITHOUT interest calculated over 30 years would be only 451k – even with low interest, that cannot be...

Maybe someone has an idea or tip about what I could have overlooked or how such a calculation typically comes about?

Thanks in advance...

Just calculate these loans online, there are [Baufinanzierungsrechner] where you just enter the relevant numbers and then get a pretty accurate result. You apparently already know the respective remaining debt and continuing interest after the fixed interest period, so it can be calculated quite well with that.

After the fixed interest period expires, everything is just "looking into a crystal ball." What if interest rates rise to 9% again in 15 years? Then everything will collapse... Calculate for yourself what remaining debt there will be after 15/20 years and what you can afford then.

Number 2 sounds like a building savings contract. If so, the installment could increase significantly. Then it would also fit again with the 30 years.

Rising back to 9% after 15 years? Then everything collapses...

: I understood he has 30 for loans II and III. Only the interest rate is different in the first 15 than in the last 15.

: actually, the installments for loans II and III do not match the 30 years. So your seller still has to improve that so you understand the construct and it is comprehensible for you.

I assume the whole thing is just a non-binding financing proposal, right?

I have a guess who your prefabricated house builder could be (a big blue one or a sister company).

They have a nice wording regarding financing in their factory contract. Basically, as long as the final calculated installment does not drive you immediately into insolvency, you cannot get out of the contract without costs.

So only sign when a binding financing contract from bhw is actually available.

Maybe I expressed myself incorrectly. So I) is KFW, after 20 years 33k remains and that is currently a crystal ball, but it could also be "secured."

II and III are already fixed now at 2.35% interest after 15 years, so you can already calculate when you would be finished with constant rates. Each approximately after a total of 37 years - not 30. However, if I am finished with KfW after 30 and use this rate additionally for II and III, meaning continue paying throughout, it naturally won't take a total of 37 anymore.

I don't know why everything here is supposed to be a crystal ball or why the building savings contract could massively increase or due to the interest rates when you already get the further interest rate secured after 15 years?

Of course, all of this still has to be put in writing and examined, but I have at least received the core statements like this. Where is definitely a catch here?