jan2110
2016-09-06 08:19:14
- #1
We plan to buy and renovate a house built in 1957.
The price is 85,000 + 70,000 renovation costs. (with rough cost estimates and comparisons, the renovation costs are around 55,000, but this way we still have a buffer)
We will pay ancillary costs such as broker fees, notary, and property transfer tax from our equity.
This leaves a financing amount of 155,000. At the moment, only our house bank can offer this to us.
It consists of:
50,000 Kfw
85,000 from the bank at 2% interest fixed for 10 years.
The repayment rate is 3%, so the monthly installment is about ~650€
I have already asked about a 15-year fixed interest period. This is apparently not so easy with the bank and our project, but an attempt will be made to achieve a 15-year fixed interest period. Our advisor wants to initiate this.
She also, of course, offered us a building savings contract. With the low rate we have, it makes sense to me to pay a little extra into the building savings plan on the side, so that after 10 or 15 years we have secured interest rates and can pay off part of the remaining debt separately.
Does that make sense to you, or would you prefer to increase the repayment rate?
With an old house, something can always happen, of course, and over the years many things will naturally still have to be done to the house (repaving the driveway, possibly a second carport, renewing the facade...)
With a high repayment rate, I would then have no or less opportunity to put something aside for repairs on the side.
The price is 85,000 + 70,000 renovation costs. (with rough cost estimates and comparisons, the renovation costs are around 55,000, but this way we still have a buffer)
We will pay ancillary costs such as broker fees, notary, and property transfer tax from our equity.
This leaves a financing amount of 155,000. At the moment, only our house bank can offer this to us.
It consists of:
50,000 Kfw
85,000 from the bank at 2% interest fixed for 10 years.
The repayment rate is 3%, so the monthly installment is about ~650€
I have already asked about a 15-year fixed interest period. This is apparently not so easy with the bank and our project, but an attempt will be made to achieve a 15-year fixed interest period. Our advisor wants to initiate this.
She also, of course, offered us a building savings contract. With the low rate we have, it makes sense to me to pay a little extra into the building savings plan on the side, so that after 10 or 15 years we have secured interest rates and can pay off part of the remaining debt separately.
Does that make sense to you, or would you prefer to increase the repayment rate?
With an old house, something can always happen, of course, and over the years many things will naturally still have to be done to the house (repaving the driveway, possibly a second carport, renewing the facade...)
With a high repayment rate, I would then have no or less opportunity to put something aside for repairs on the side.