We are currently in the critical phase and want to start building soon. A plot of land worth about €150,000 is available.
Additionally, equity capital amounting to €50,000 is available.
Net income Him: €3,400 (plus variable bonus) Net income Her: €2,100 (13 salaries) Household net income: €5,500 Age: both 28
The financing sum amounts to €370,000 and is composed as follows.
€250,000 MHB with effective annual interest rate 1.01% over 30 years €120,000 KFW with effective annual interest rate 0.75%
The monthly burden would be approximately €1,500. The term would then be about 21 years if everything goes smoothly. From your point of view, is the financing feasible or are we overextending ourselves with the loan?
We are also planning a similar project, have a similar income, and are of similar age.
However, we will take out a loan with about €1,600, initially had concerns as well, but these have now completely subsided.
I think this is very manageable considering the current situation. How about children? Without children, you could easily increase the rate again. Congratulations on the saved equity capital (land and existing equity)!
The interest rates are really amazing.... Please note: KfW has been at 0.95% for a few weeks/months. How about changes in repayment rates and special repayments on the €250,000 amount? That would also be something to consider incorporating here.