toxicmolotof
2016-06-21 00:58:05
- #1
I come to 135,000 interest costs and a monthly installment of 1,320 euros.
It's somehow not what you wanted, is it?
It's somehow not what you wanted, is it?
Feedback on financing offer requested
- Erstellt am 2016-06-20 20:25:41
Musketier
2016-06-21 06:49:05
- #2
Once again a clever building society salesperson who does not explain the product to the customer, ignores the customer's wishes, and thinks the customer has received the deal of the year.
world-e
2016-06-21 07:27:27
- #3
We can hardly believe our eyes: interest payments made at the end of the repayment phase €40,738.87
That’s more or less how I felt when I first looked at a home savings contract offer. Until you take a closer look and realize that for the first 15 years you’re only paying interest without repaying anything. If I’ve read it correctly regarding the 3rd financing component, you’re paying €547 monthly in interest without repayment. That adds up to considerable interest costs. Of course, you have security, but that also comes at a price.
Musketier
2016-06-21 07:27:58
- #4
small addition
Although one should of course put it into perspective here, a request of 1100€ does not naturally match a financing amount of 369K€.
For comparison, I just calculated the break even for an annuity loan with the same rate. That results in an interest rate of 2.25% with 30 years interest rate certainty. I currently don't know any terms, but to me that doesn't sound completely unreasonable either. The only risk would be the non-allocation of the [Bausparer].
Although one should of course put it into perspective here, a request of 1100€ does not naturally match a financing amount of 369K€.
For comparison, I just calculated the break even for an annuity loan with the same rate. That results in an interest rate of 2.25% with 30 years interest rate certainty. I currently don't know any terms, but to me that doesn't sound completely unreasonable either. The only risk would be the non-allocation of the [Bausparer].
86bibo
2016-06-21 08:07:12
- #5
This risk is not low, as there is only a 1-month buffer. If you really have to reduce the rate, then the thing quickly runs 1-2 years longer until allocation, and that with uncertain interest on the full amount of 370,000€.
Jochen104
2016-06-21 08:18:43
- #6
Hello,
I also think that the desired rate and the financing amount do not match.
Here is a rough calculation with the same rate for the building savings contract and the annuity loan:
I somehow come up with an interest rate of 2.13%. The increased payments in the second 15-year period are shown through special repayments.
In my opinion, this speaks much more in favor of an annuity loan with initially higher repayment and later reduction than for a building savings contract where you are flexible during the savings phase but have to commit to a contractual minimum repayment later.
I also think that the desired rate and the financing amount do not match.
Here is a rough calculation with the same rate for the building savings contract and the annuity loan:
I somehow come up with an interest rate of 2.13%. The increased payments in the second 15-year period are shown through special repayments.
As long as there are no children, we can manage €1,500 per month.
In my opinion, this speaks much more in favor of an annuity loan with initially higher repayment and later reduction than for a building savings contract where you are flexible during the savings phase but have to commit to a contractual minimum repayment later.