Is a construction financing advisor present?

When I currently look at the economic situation, it is only a matter of time until the interest rate gradually rises. I would secure the interest rates as soon as possible and not go below a 20-year fixed interest period! I financed last year in February and just last week, both times under similar conditions and both times at the bank I trust, in the meantime the interest rates have risen by a good 0.5%! The trend is continuing upwards

Trend continues to rise

For about 6 months now, interest rates have been moving sideways, slightly declining. I also do not expect rising interest rates. Rather stable in the medium term.

So the Ing-Diba interest rates for 15 years, 60% loan-to-value have moved from 1.4% to 1.9% to 2% to 1.9% to 1.8% and finally back to 2.0%.

I prefer to look at the interest rate charts of major financial service providers. There was a low point at the beginning of 2015, a strong increase in April, then sideways with a slight decline afterwards.

When I look at the economic situation currently, it is only a matter of time until the interest rate gradually rises.

Trend continues to rise

Okay, I would also like to have your crystal ball. But luckily, everyone is allowed to think what they want. However, one should not be surprised when asked for evidence for these claims. What do the economists think?

Maybe a finance expert here in the forum can help me. I spoke for over 30 minutes with a good acquaintance who is a mortgage financer and I still don't understand it. What exactly is "Muskelhypothek Eigenleistung"? I thought it increases the equity. So why does this item also appear under expenses? Why are the exterior facilities listed again?

The house costs €293,800, my acquaintance had already included the special requests of €20,100. You only pay purchase incidental costs on the value of the house, so don’t be surprised by the total incidental purchase costs.

We have €55,000 equity. I told him we want to use €35,000 for financing and €20,000 for the kitchen, flooring, walls/ceiling, and the garden.

He then said that is not a good idea. He allows €10,000 for the kitchen and adds €45,000. I then said "wait," then we don’t have any money left for the flooring, walls/ceiling, and the garden. Then he said we can declare €15,000 as Eigenleistung (I have no idea why these appear as expenses [he said it increases the value of the property]). I understood him as saying we can pay ourselves the €15,000 if we provide invoices. I agreed to that.

Now he told me, no, regarding the €15,000 Eigenleistung under expenses, I don’t have access to that at all; that €15,000 is for the exterior facilities.

I just don’t get it anymore. Maybe someone can explain the point of "Muskelhypothek" to me more precisely.

I tell the bank I do the work and not the craftsmen. The trades cost €15,000, that’s why they are probably listed under expenses. Since I do them, they are also listed under equity. Why can I not access these €15,000 that the bank co-finances to buy materials or pay craftsmen?