Experience / Opinion on home financing with a high loan amount

  • Erstellt am 2019-04-24 15:54:01

Milo3

2019-04-26 00:00:15
  • #1
Do I read that correctly that the monthly rate is €1650? How do you come up with that?! Either I misunderstand or you have a mistake in it.
 

HilfeHilfe

2019-04-26 08:39:13
  • #2


no, you can also recalculate, see original post 400k loan + 100k loan KFW, total repayment 2.55%

of course, that is quite a hefty loan amount
 

Tassimat

2019-04-26 10:07:00
  • #3
Just a general question about the fixed interest period: The 15 years start at the beginning of the availability, not at the drawdown, right? With a 2-year construction period, you would have effectively only repaid 13 years. Am I correct in understanding this?

With such a small interest rate difference, I would definitely fix it for 20 years with 2% repayment. Just make extra repayments on the rest. Even the 60k remaining debt of the KfW shares can still be managed in 10 years.

You can speculate a lot about interest rate developments, but the rate could go up by 1 percentage point in 10 or 15 years. So it doesn’t make sense to choose an ultra-tight term now just to save 0.1x% interest.
 

Noelmaxim

2019-04-26 10:09:21
  • #4


Very good point! Repayment usually starts only after full disbursement, whereas the fixed interest period starts upon loan approval or at a soon following date.
 

HilfeHilfe

2019-04-26 15:56:53
  • #5
Fixed interest rate from acceptance plus 3 days. Repayment only upon full disbursement
 

mirakuli

2019-04-26 18:57:29
  • #6
Thank you for this hint, which I had not considered at all. Your posts have definitely also led to my boyfriend becoming a bit more thoughtful. Neither of us are experts and the bank advisors only tell me what I want to hear. Therefore, this has been very helpful.
 

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