NorbT
2016-09-26 22:11:39
- #1
Hello,
we have obtained offers from several banks and found that some banks, for example, add the kitchen to the loan or subtract it from the equity. I have read elsewhere that it does not make a difference... but is that really the case?
Example 1: Kitchen is added to the loan
Loan: 290,000 (house construction) + 10,000 (kitchen) = 300,000
Equity: 60,000
Equity ratio = 60,000 / 300,000 = 20%
Example 2: Kitchen is subtracted from the equity
Loan: 290,000 (house construction)
Equity: 60,000 - 10,000 (kitchen) = 50,000
Equity ratio = 50,000 / 290,000 = 17%
Am I making a mistake? Why is this handled differently by the banks?
we have obtained offers from several banks and found that some banks, for example, add the kitchen to the loan or subtract it from the equity. I have read elsewhere that it does not make a difference... but is that really the case?
Example 1: Kitchen is added to the loan
Loan: 290,000 (house construction) + 10,000 (kitchen) = 300,000
Equity: 60,000
Equity ratio = 60,000 / 300,000 = 20%
Example 2: Kitchen is subtracted from the equity
Loan: 290,000 (house construction)
Equity: 60,000 - 10,000 (kitchen) = 50,000
Equity ratio = 50,000 / 290,000 = 17%
Am I making a mistake? Why is this handled differently by the banks?