Is construction financing representable like this?

Hello JoS,

thank you very much for your feedback, I think our thoughts are not far apart when it comes to security regarding the monthly rate. Just as you wrote, that is also our plan. Use special repayments! Especially since I repeatedly receive a fairly high intra-year sales commission, we are able to make corresponding special repayments.

I don’t quite understand your question about why we want to pay interest for 3 years. Preferably, we don’t want to pay any, but that is the minimum fixed-interest period, isn’t it?

Best regards
maestro6789

I don't quite understand your question about why we want to pay interest for 3 years. Ideally, we don't want to pay any, but that's the minimum fixed interest period, or am I mistaken?

Best regards


maestro6789

In this regard, it might be like that with the financier you chose – but on the market, you can definitely get
b.a.w. conditions (flexible conditions – but you can always, for example, redeem after 16 months)
1-year or 2-year fixed interest periods.
We advisors, or directly the bank, just earn a bit less from that.

JoS
Advice – but fair!

Hello JoS,

I don’t quite understand your question about why we want to pay interest for 3 years. Preferably, we don’t want to pay any, but that’s the minimum fixed interest period, isn’t it?

Best regards
maestro6789

One more small addition.
I assume you do not plan any ongoing repayment for the short-term loan. Furthermore, I assume the 86% loan-to-value ratio you mentioned.

Then just a rough estimate:

50,000 for 3 years with the assumed rate of 4.37% interest = 6,555€
50,000 for 2 years likewise 4.65% = 4,650€
temporary condition here 16M 5.71% = 3,806.67€

But beware, the temporary condition is variable in both directions.

In any case, I would not pay interest for a period not needed.

What do you think of the following solution:

No Kfw loan

187,000.- Euro, 3.55% interest, 3.5% repayment, fixed for 10 years = 1,098.63 monthly

50,000.- Euro, 3.95% interest, 1.0% repayment, fixed for 15 years = 206.25 monthly

50,000.- Euro, 3.25% interest, 1.0% repayment, fixed for 3 years = 177.08 monthly

Total 1,481.96 € monthly

The remaining debt after 10 years on the loan of 187,000.- Euro will then be 108,564.- Euro.

5% special repayment p.a. possible on all 3 loans.