ViciousJake
2013-06-02 18:05:27
- #1
Hello,
currently we are seriously having an offer calculated for us, which I initially declined, still find strange, and yet apparently is the best for us. (HELP!)
Regarding the key data:
Equity: 120K€
To be financed: 290K€
Total volume: 410K€
Requirement: installments max. 1250€/month
We currently have an offer from a bank that guarantees our interest rate over 27 years. It is a package where only the interest on the loan is paid until the allocation of the building savings contract, and the building savings contract then repays the loan. Interest rates are 2.6% before and 2.9% after allocation. The loan would have a volume of 240K€. 50K€ would be covered via Kfw at 1.15%.
There is also a special repayment right of 10% p.a. in the years before allocation, which we want to use as much as possible until the children arrive, but otherwise no repayment is planned in the first years.
We are aware that banks make a good profit from this model (a lot of interest + 1% completion fee for the building savings contract). And yet, after numerous consultation appointments, we found no alternative model that would let us finish payments within 30 years at the given installments and at the same time promise a certain interest rate security.
This surprises me a lot and yet I currently find nothing better.
As I said, there is currently an inquiry with the bank that offers this model. However, with our current advisor we are not entirely sure if we really learn about all the catches, even though after a frank talk we now feel better informed and involved. However, we have already dismissed two advisors (one independent, one bank) because they apparently only wanted to sell their thing and did not respect our requirements.
With alternative calculations, we suddenly had installments of up to 1600 euros or high residual debt amounts after 10 years, which could become problematic if interest rates were to rise above 5%.
Do you have an assessment?
Thanks a lot in advance,
Jake
currently we are seriously having an offer calculated for us, which I initially declined, still find strange, and yet apparently is the best for us. (HELP!)
Regarding the key data:
Equity: 120K€
To be financed: 290K€
Total volume: 410K€
Requirement: installments max. 1250€/month
We currently have an offer from a bank that guarantees our interest rate over 27 years. It is a package where only the interest on the loan is paid until the allocation of the building savings contract, and the building savings contract then repays the loan. Interest rates are 2.6% before and 2.9% after allocation. The loan would have a volume of 240K€. 50K€ would be covered via Kfw at 1.15%.
There is also a special repayment right of 10% p.a. in the years before allocation, which we want to use as much as possible until the children arrive, but otherwise no repayment is planned in the first years.
We are aware that banks make a good profit from this model (a lot of interest + 1% completion fee for the building savings contract). And yet, after numerous consultation appointments, we found no alternative model that would let us finish payments within 30 years at the given installments and at the same time promise a certain interest rate security.
This surprises me a lot and yet I currently find nothing better.
As I said, there is currently an inquiry with the bank that offers this model. However, with our current advisor we are not entirely sure if we really learn about all the catches, even though after a frank talk we now feel better informed and involved. However, we have already dismissed two advisors (one independent, one bank) because they apparently only wanted to sell their thing and did not respect our requirements.
With alternative calculations, we suddenly had installments of up to 1600 euros or high residual debt amounts after 10 years, which could become problematic if interest rates were to rise above 5%.
Do you have an assessment?
Thanks a lot in advance,
Jake