Financing offer - Interest okay? Your opinion...

3.75% was already correct, yes. ;-)

I would have expected about 3.5% given the 25 years fixed interest period and the loan amount. That's why I wanted to ask here and gather opinions, since no one in our surroundings is currently building or buying and we have no possibilities for comparison.

Hello nordanney,

according to the above list, the market value is €250,000.
€173,500 must be taken up.
The rest is equity or due to the forced sale.
If I include the so-called safety discount of 10%, a loan value of €225,000 results.
Thus, the loan-to-value ratio (173,500/225,000*100) is 77.11%.
However, there are differences.
Some banks base it purely on the market value of the property, others do not.
But because of that, I find the interest rate a bit high.

Have a nice weekend everyone!

Best regards
André

@André: The banks we spoke to apparently all only base their calculations on the purchase price. However, the plot alone has a value of almost 145,000 euros, according to BORISplus NRW (782m² x 185 euros), the house is completely renovated / refurbished, everything is tiptop. And I'm not just writing this because we want to buy the house. *g*

One more question added:

How much leeway do banks have with mortgage loans? If I try to negotiate the banker down next week, do I have a good chance or are they bound to the interest rates specified by the computer?

Market value is according to the definition the value achieved on the market. An appraisal helps little here, and it seems there is no one willing to pay the value according to the appraisal. Ask five appraisers, and you will get five different values :rolleyes:

There is always leeway with interest rates. Ideally, of course, there would be a counteroffer. However, you have to feel out for yourself what can actually be achieved. In the worst case, the result is = 0, but asking and negotiating costs nothing!

Market value is, according to the definition, the price achieved on the market. An expert report helps little here, as it seems there is no one willing to pay the value according to the report. Ask five experts, and you will get five different values :rolleyes:

There have already been enough interested parties willing to pay the original purchase price of 249,000 euros, but the financings regularly fell through.

In the meantime, the banks are putting a lot of pressure on the previous owners because they want to see their money, plus the fact that the previous owners separated some time ago and now want to settle everything slowly in order to finally be able to close that chapter of their old lives.

Well, in the end it doesn’t really matter, the fact is that the banks generally base themselves only on our current purchase price. Unfortunately... ;-)

There is always leeway on interest rates. Ideally, of course, a counteroffer. What can actually be achieved, you have to gauge yourself. In the worst case, the result = 0, but asking and negotiating costs nothing!

I’ll have to push myself next week; negotiations aren’t really my strong suit, at least not in these areas.

We can live well with the current interest rates, but of course we will gladly take anything that goes down further.