Financing offer for 120% financing

  • Erstellt am 2019-05-28 17:16:55

hampshire

2019-05-28 22:26:23
  • #1
There is equity after all, it is just not being used. You can do that with the [interest rate].
 

Noelmaxim

2019-05-28 22:36:39
  • #2


Well, but the interest rate would actually get better if the equity is used.

What is meant by the other project, the OP can surely also explain.

I would be interested in the bank that offers something like that.
 

ypg

2019-05-28 23:06:40
  • #3


Why is it being sold cheaper then? Does it have a defect or structural damage that only the owners know about? Otherwise, it seems to be a good deal – the main thing is that you can afford the installments. With this secrecy, anything is possible, where several people here would warn. You have to recognize that yourselves.
 

Brzezie

2019-05-29 09:55:14
  • #4
Good morning everyone,

First of all, despite many toxic comments, I would like to thank you for the numerous responses!

I will now try to answer the questions collectively

Apartment price:


    [*]I would call it a sale between neighbors, which came about, among other things, through some kindness etc. (help with moving, sale/disposal of unused furniture..).
    [*]The apartment was valued by an independent party at about €110,000-120,000. A mirrored apartment one floor higher and somewhat better modernized is even valued up to €130,000.
    [*]Current prices in the immediate vicinity.

All in all, it is not about whether it is a bargain or not. We are aware of this “risk,” but it remains our decision nevertheless

Mentioned projects:

    [*]Currently a larger church wedding
    [*]Soon the conversion of the attic (one room) in the parental home (abroad)

Accordingly, our current savings are planned for this. We are aware that we might get a slightly better loan, but we have decided to accept the higher interest rates in the end.

120%?:


    [*]Apartment price
    [*]Additional purchase costs
    [*]€10,000 modernization


Bank:

Unfortunately, I do not want to name the exact bank, as I do not know if it is even allowed to reveal so much information :/ It is, however, a subsidiary of the xxxx bank.

Plan for the apartment and the loan:

The plan was to pay off the apartment within a maximum of 10-12 years with the help of annual special repayments. This has changed somewhat due to the KFW funding and will now most likely be replaced by special repayments (bank loan) + home savings contract (repayment of KfW after 10 years), etc.

It is also planned that we will live there for at least 3 years (to avoid speculation tax); after that, it is still open whether we will sell/rent out the apartment and buy a house or a larger apartment.



All in all, it seems my main question (Is this offer good?) has been answered positively, which reassures me a bit!
 

Noelmaxim

2019-05-29 10:04:01
  • #5


Then it is not 120%, because the modernization (provided it is no furniture or kitchen) is value-increasing (often even 100%). To determine the loan-to-value ratio, you divide the requirement of 110,000 euros by the purchase price of 92,000 euros plus 10,000 euros modernization, total 102,000 euros, which corresponds to a loan-to-value of 108%.

Of course banks may be named, why not?

Then I assume it is Postbank.
 

ypg

2019-05-29 10:17:58
  • #6


...because €10,000 is not enough for an increase in value, maybe. Not much happens in the bathroom anyway...
 

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