Extend loan term?!

Hi guys!!!!

I haven't asked the bank yet, but maybe you can tell me if this is possible.

My wife (27) and I (26) want to buy a house.
My question:

If you have a monthly payment of e.g. €700 (% + 1% repayment) for e.g. 25 years, can you tell the bank:
€700 is too much for me. I can afford it but I’m afraid. I would like to pay €600 (% + 1% repayment) and adjust the term accordingly, so not 25 but maybe 28 years. Is that possible?

Hello Andy1983,

you indirectly determine the amount to be financed yourself, through the house you have chosen.

The conditions for the financing are set by the bank and currently range between 3.2% and 4% depending on the loan-to-value ratio.

In addition, there is a repayment of at least 1%.

So, you only have influence on the amount of the monthly installment through the purchase price and thus the financing amount.

Best regards

M. Thiemann

Ok, let's put it this way. I want a loan of €200,000. Interest rate of 4% and 1% repayment. 200,000*5%/100/12= €833 monthly payment. Let's say the term is 26 years. Can I also do it so that I say it's too much for me? I want to keep the 1% repayment, lower the payment to €750, but pay not 26 years but 30 years? Is that possible? Do banks do that?

that is nonsense, if you want to repay 1%, then you just pay that too. The bank does not want full financing of the house from you in x years. That is your problem, but at the moment I would rather fix the interest rate for as long as possible and rather compare and save there. Such good interest rates do not come around often, I can still remember other times... How long you need you can calculate with any online calculator.

If you can get the interest rate down to 3.5%, otherwise rather 40 than 30 years repayment. It's not that hard, is it? Your payment consists of interest and principal repayment, since the interest is fixed for X years, you can only vary the principal repayment, which automatically changes the term.

yes, with house and garden I would also try to stay at one third. The bank will certainly want 1% repayment. Then fix the interest rate for a long time, as it is currently very, very favorable. And put aside a reasonable investment alongside that and save in parallel for contingencies. But such good times as right now really don't come around that often. Construction prices very low and interest rates on top...