Finance land/house separately - fixed interest rate

  • Erstellt am 2017-08-31 10:46:44

serenity199

2017-08-31 10:46:44
  • #1
Hello,
we are currently at the very beginning of our planning/financing. Therefore, many people here will surely have more knowledge and be able to help me with my questions for understanding.

It is clear that we will finance the land and the house separately. For the land, we have an offer with 1.34% and a 2-year fixed interest period. Allegedly, the cancellation of the loan thereafter is free of charge. Of course, we want to keep the option to cancel open in order to choose other loan providers for the house loan as well.

My questions regarding this:
1. If I cancel the loan after 2 years because I want to refinance, do I then only pay back the remaining debt to the bank or the remaining debt plus the planned interest?
2. Will there really be no costs for me, or what should I watch out for in the contract to prevent that from happening? What about a prepayment penalty, for example?
 

toxicmolotof

2017-08-31 13:47:46
  • #2
The contract only lasts two years. That means you have to refinance or extend it (not may!). You don’t want to refinance then, but you have to. It’s not an option, it’s a compulsion.

There is no [VFE] then. Which planned interest rates are you talking about? There are none.

Nothing necessarily extends tacitly, unless it’s stated in the contract.
 

Caspar2020

2017-08-31 14:06:26
  • #3


Usually, an automatic extension mechanism is agreed upon; however, it is very unfavorable. Otherwise, the bank would call the loan due...

(assuming there is a typical annuity loan with an agreed interest rate fix). It would be different with a bullet loan.
 

HilfeHilfe

2017-08-31 14:09:42
  • #4
No, there is no VVE fee. But you have to be careful not to get into time pressure. For example, refinancing and not yet having decided on a bank that wants to finance house construction and the land.

I also don’t understand what you hope to achieve with a 2-year fixed interest period? It could also be that interest rates rise. Maybe fix it for 10-15 years after all and also take out the house loan from the same bank and choose the term so that both expire at the same time.
 

serenity199

2017-08-31 14:12:39
  • #5
If I choose a fixed interest rate period of 10 years, I cannot get out in 2 years. And then the bank is listed first in the land register, and no other bank would then give us a loan for the house. Then I would be dependent on Bank No. 1, and they can do whatever they want with us. Therefore, I want financing from Bank 1 now to be able to buy the plot of land, and then in about 2 years, when construction is supposed to start, I want to take out the construction loan. But specifically with the bank offering the best deal.
 

Zaba12

2017-08-31 21:02:44
  • #6


Take a variable construction loan. The loan then runs without fixed interest, and you can repay as much as you want every six months on the interest adjustment dates, not just 5%.

I also did this. I am enthusiastic about it and would do it again or recommend it anytime if you plan to finance the land and house separately.
 

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