Financing - where is the mistake?

  • Erstellt am 2016-01-09 22:20:31

ElaNi

2016-01-09 22:20:31
  • #1
I would need some opinions on my financing 'problem':

We planned to buy a house for 230,000 euros. With low renovation costs (around 10,000 euros) plus additional costs, the loan amount would be estimated at around 265,000 euros (without a broker, from private). With this information, I contacted a mortgage broker. The offer was a mixed interest rate (KFW, private loan for additional costs, and regular loan) at 2.6% with a monthly rate of 1,250 euros without KFW repayment.
I don't know the term, I requested a 1% repayment.

So - I then declined, but today I reconsidered because of a newspaper article, used a common repayment calculator, and according to the data, I would have a rate of around 800 euros??????

Now I am really annoyed, that would have been my dream house and our market is so empty, that was the opportunity... So, where is my mistake?

Thank you very much.
 

EveundGerd

2016-01-09 22:41:23
  • #2
How high is the calculated rate in relation to the total household income? I gather that you were unsure and only submitted a financing inquiry. Why didn’t you go to your house bank first? Is there any equity at all? In my opinion, your mistake lies in the attempted “quick shot” without a properly calculated financing.
 

kbt09

2016-01-09 22:48:40
  • #3
And repayment only 1% ... I believe it was more likely at least 2% that was offered to you. Sensibly, otherwise you would be paying off for almost 50 years.
 

Legurit

2016-01-09 22:53:49
  • #4
Annuity of 5.66% (15 T€/265 T€) -> 2% repayment.

Apart from that, I don't really think banks are very enthusiastic about your setup... that would be a >100% financing, or did I miss something?
 

ElaNi

2016-01-09 22:54:51
  • #5
I was uncertain, yes, because it’s simply a lot of money and I chose a civil servant career for good reasons, because I’m not very (tendency zero..) willing to take risks : )

This broker was recommended to me by some acquaintances who also financed through him. That’s why I wasn’t with the house bank.

I just don’t know whether the calculation error was his or mine?

Quick decision – I have been working on it more or less for months, but with us, when a house comes on the market, you have to decide within one, at most two days. Really tough, that’s why I didn’t calculate more precisely.

Equity capital is negligible, my husband is still studying and has Bafög debts to pay from that, plus our car is 16 years old, etc...

So nothing significant.

Income is around 3,400 plus child benefit twice minus total health insurance 310 euros. But we save around 1,000 euros monthly (excluding cold rent, then around 1,550).
 

ElaNi

2016-01-09 22:57:15
  • #6


Thanks. I had asked for 2%, so I was probably at just under 1,600, then the question about 1%. So he must have made a mistake.

I just wanted the 1% until my husband finishes his studies, so we have a bit of leeway, then to repay quickly through special repayments.
 

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