riGo
2010-09-13 09:45:28
- #1
Hello everyone,
I need your expert advice, as I don’t have much experience with financing deals myself! :)
So, the framework:
I (25) want to build a small bungalow, no basement, no attic conversion, no garage, just a small bungalow with about 90sqm of living space.
Costs 140,000
Equity: 30,000
Loan amount: 110,000
Monthly affordable rate: 900€
Hm What else do you need?? :)
Wfa (possible only next year), KFW would already be possible now, just asking if it makes sense since the interest rates are currently so low that KFW hardly pays off, especially because of the grace year.
My question:
Should I go with or without KFW and take the rest simply as an annuity loan from the cheapest bank, or do you have another suggestion?
I received 2 proposals from an independent financial advisor, what do you think about them??
1: 2 KFW loans (50,000 - 2.85% and 35,000 - 2.95%) term 15 years, fixed interest 10 years, repayment 5.8%. Remaining debt about 20,000 and 14,000. One with special repayment, the other without! Then another 25,000 from a different bank as an annuity loan with 3.52% interest and 8.5% repayment, fixed interest 10 years, no remaining debt.
or
2: Without KFW:
60,000 with 3.19% interest and 8.5% repayment and 50,000 with 2.85% interest and 4% repayment. Both 10 years fixed interest. The 50,000 has 1 year repayment-free... The term would be 20 years.
I actually think the term of 20 years is nonsense because I think that with a monthly rate of just under 1,000€ I could be finished in about 10 years.
So those are the two offers, I hope you can help me, since I don’t have much idea about this myself :/
Best regards
riGo
I need your expert advice, as I don’t have much experience with financing deals myself! :)
So, the framework:
I (25) want to build a small bungalow, no basement, no attic conversion, no garage, just a small bungalow with about 90sqm of living space.
Costs 140,000
Equity: 30,000
Loan amount: 110,000
Monthly affordable rate: 900€
Hm What else do you need?? :)
Wfa (possible only next year), KFW would already be possible now, just asking if it makes sense since the interest rates are currently so low that KFW hardly pays off, especially because of the grace year.
My question:
Should I go with or without KFW and take the rest simply as an annuity loan from the cheapest bank, or do you have another suggestion?
I received 2 proposals from an independent financial advisor, what do you think about them??
1: 2 KFW loans (50,000 - 2.85% and 35,000 - 2.95%) term 15 years, fixed interest 10 years, repayment 5.8%. Remaining debt about 20,000 and 14,000. One with special repayment, the other without! Then another 25,000 from a different bank as an annuity loan with 3.52% interest and 8.5% repayment, fixed interest 10 years, no remaining debt.
or
2: Without KFW:
60,000 with 3.19% interest and 8.5% repayment and 50,000 with 2.85% interest and 4% repayment. Both 10 years fixed interest. The 50,000 has 1 year repayment-free... The term would be 20 years.
I actually think the term of 20 years is nonsense because I think that with a monthly rate of just under 1,000€ I could be finished in about 10 years.
So those are the two offers, I hope you can help me, since I don’t have much idea about this myself :/
Best regards
riGo