Financing option - Which one is better?

Oh, and the interest rates for the advance loan are missing from the variant with the home savings contract. Please add them. Or are the 2.88% for both the advance and the home savings loan?

So you only got offers from two banks. Maybe a bit too few?!

How flexible are the loans without a building savings contract regarding the amount of repayment, special repayments (which you are calculating), and changes in repayment? I’ve been playing around with Excel again. ;)

Hello,

we approached 3 banks + financial service providers. One bank was immediately eliminated. Regarding service providers in general, we simply received and read too many negative reports.

So there are still 2 banks in the running. One of them with the "clear" building savings contract/Fuchs variant and the other with pure L-Bank and loans, as the major chunk.

Oh, and the variant with the building savings contract is missing the interest rates for the advance loans. Please add those. Or are the 2.88% for both the advance and building savings loans?

I can help you as follows:

Fuchs 50,000 EUR
Savings phase 16 years = monthly nominal interest 116.67 EUR (2.80%) + savings contribution 75.00 EUR
then 9 years 10 months = repayment 313.00 EUR (interest is no longer detailed, possibly total costs as an annual percentage? => 3.25%)

Nevertheless, even with the low repayment, any flexibility is already gone.

But you need €250,000 and still have €70,000 left on the principal after 25 years.
That means €180,000 repaid after 25 years - right?

But you have paid about €321,500.
And on top of that comes €70,000 RS + their interest. How do you want to get rid of that in 5 years? That would be €1,166 per month even without interest.

Also correct?

Are you sure you're making a good deal with that?

I assume your budget does not allow more than €1,080 per month.
Otherwise, the construct wouldn't be so adventurous and the repayment not so awkward.

I have already had several conversations with advisors and banks; none of them have so far come up with the idea to propose such an adventurous plan to me. And I never said I didn't want it.

For comparison again:

with the "adventurous" one with L-Bank (€50k), building savings contract (€28k), Fuchs WohnRente (€100k), loan (€105k) we have total costs (without including special repayments) of €421,339.64.
The variant L-Bank (€50k), loan (€205k) (also without special repayments) has total costs of €448,743.38.

I have now listened to and had the construct explained by the bank 3 times. It sounds plausible, it has lower total costs, and the term is shorter. And I had an offer from 2 banks including the building savings contract etc. Maybe it simply depends on the banks themselves; not every bank offers the Fuchs.

As far as I know, something about this was also mentioned in the Stiftung Warentest Finanzen magazine (last or current issue). And generally, the report was not very negative.

I have now calculated the variant with the three home savings contracts, everything seems to fit. So it seems to be the best of the alternatives available so far.

If you are aware of how a home savings contract works and its risks ... go for it.

Just my suggestion again, maybe consider a pure annuity loan (+Kfw) with 20 years fixed interest.

How flexible are the loans without a home savings contract regarding the amount of repayment, special repayments (which you are calculating with) and changes in repayment? I have played a bit with Excel again. ;)

The answer is still missing here, was probably censored?! ;)

I have now calculated the option with the three building loan contracts, everything seems to fit. So it seems to be the best of the alternatives presented so far.

If you are aware of the way a building loan contract works and its risks ... go for it.

Just a reminder of my suggestion, maybe still consider a pure amortized loan (+Kfw) with 20 years fixed interest period.



The answer is still missing here, was probably censored?! ;)

Hello backbone23, we see it the same way, it seems to be the best solution. Of course, we are aware of the pitfalls of the building loan contract and/or Fuchs. For example, I think of rigid installment rates without change / in the case of Fuchs if the issue of sale due to care needs arises / divorce and whatever / .... there are certainly more, so feel free to add a few short keywords ;-)

With the amortized loan (building loan contract variant is 105,000 EUR, pure amortized loan 205,000 EUR), the same interest rates always apply. Interest fixed for 25 years, special repayments up to 5% p.a. as well as 5 repayment changes included. There is also the right of special termination after 10 years if the interest rate should "go down further."

According to the bank, the interest fixation over "only" 20 years makes no sense, as it would amount to just 0.1%.