Finance another house...

Put the stuff on MyHammer and see if you can find an all-rounder there who will finish it for you. MyHammer helped us.

Put the stuff on MyHammer and see if you can find a all-rounder who can finish it for you.

please don’t....

the completion was estimated at 70k.

Did you even include the 70k in the financing? Or is it already completely used up for the top floor?

But what you’re putting together there is nonsense. The market value back then doesn’t necessarily have to be the same now. Also, your 70% of the price back then is just an assumption on your part.

Quite obviously not, because real estate prices have on average increased in recent years.

The 70% is still below or at the limit of the common lending value of 80% (usual range between 10% and 30%) - you should know that as a banker. The lending value is the value that can be achieved under normal circumstances at any time over the entire loan term through free sale. If I set this value at 70%, then you call that nonsense?

Dirk Grafe

Obviously not, because real estate prices have on average increased in recent years.

The 70% are still below or at the limit of the usual loan-to-value ratio of 80% (typical range between 10% and 30%) – you should know that as a banker. The loan-to-value ratio is the value that under normal circumstances can be achieved at any time over the entire loan term with free sale. If I set this value at 70%, you call that nonsense?

Dirk Grafe

Not everywhere, that’s a misconception. Especially in rural areas, you have properties that are being offered like stale beer. Also around big cities like Stuttgart, Frankfurt, etc.

The original poster can contact a real estate agent and ask what his property could roughly fetch, he could ask his bank if a property change is possible, if not, how high a prepayment penalty would be. Costs nothing but time.

Then he can sum up the three numbers and the financing requirement is settled.

I stick to my point, he is getting himself into something. You don’t need to harp on the banker either. I’m not in the credit department but at the end of the bank’s life cycle. I don’t know of a common loan-to-value ratio of 80%. You can save yourself any generalizations of 70% of the purchase price.

You can debate this with a controller, they calculate everything all over the place. It all looks pretty, but at the end of the day, reality counts.

It is all very pretty then, but at the end of the day reality counts.

Let me know when you have arrived there - I will wait that long.

Best regards
Dirk Grafe