Financing offer - What do you think about it?

Hello,
what do you think of this financing offer:

Interest fixed period: 10 years
Disbursement: €185,000.00
Nominal interest rate: 4.2%
Initial repayment: 1.314%
Installment amount: €850
Remaining debt incl. remaining interest: €154,850.70
Initial effective interest rate: 4.28%

Or:


Interest fixed period: 15 years
Disbursement: €185,000.00
Nominal interest rate: 4.750%
Initial repayment: 1.004%
Installment amount: €887
Remaining debt incl. remaining interest: €144,469.84
Initial effective interest rate: 4.86%

Hello Viti,

without knowing the total costs and the equity portion, no one can determine the loan-to-value ratio of your financing and thus cannot assess whether the financing is favorable.

You would still need to provide this information.

Just so much in advance: In the 10-year range, the KFW Home Ownership Program should be considered for owner-occupied property (from 3.25% nominal interest rate depending on the provider!).

Best regards

Marco Thiemann

Hello Thiemann,
here are the missing data:

Construction costs residential building: €195,180.50
Plot: €35,000.00 or (€40,000.00 - €45,000.00)
Additional construction costs: €15,000.00
Total costs = €245,180.50
Own contribution 195,180.50 x 0.23 = €45,180.50
Total amount to finance: = €200,000.00
Equity building savings contract: €20,000.00 (saved €8,000)
Equity architect services: €5,000.00
Living area + garage: = 195.99m2
Plot: = approx. 750m2

I hope you can now assist me further with the information.

Hello Thiemann,
thank you for the quick reply I have a few questions:

The building savings contract is not fully counted as equity, only my €8,000 that I have saved, or am I mistaken here?

Where can I get such low interest rates for the construction loan?

What would you recommend regarding the fixed interest period, 10 years or with these good conditions 15 years?

And what would be the remaining debt after these 10 years (the offer you prepared)?

So far we have an offer from the Commerzbank and will receive another offer from Deutsche Bank next week.

Hello Viti,

Sorry, I overlooked that the building savings credit only amounts to 8,000 EUR.

Then, for the building savings loan of 12,000 EUR, you must also consider the repayment rate additionally in the total monthly rate.

The remaining loans in 10 years amount to 88,241.91 + 60,720.10 for the KfW loan. So a total of approx. 148,963 EUR.

I recommend a 10-year fixed interest rate if, in addition to the financing, you can still pay free amounts, for example, into a [Bausparvertrag], to repay this remaining 149,000 EUR in 10 years. For this, you should roughly plan an additional 450 EUR monthly.

Otherwise, it’s better to secure the low conditions for 15 years.

Best regards

M. Thiemann