Loan for land - variable vs. fixed with special termination right

  • Erstellt am 2023-10-10 10:20:49

Reinhard84.2

2023-10-10 14:55:36
  • #1
I financed my house 4 years ago and the loan is still running, and I have now inquired with banks for a loan for an extension. The interest rates with the broker, banks contacted directly, and the house bank already registered in the land register were always the same, namely 4%. However, no bank had a problem with being in second rank in the land register - or 4% was a bad offer as of early October, I cannot judge that exactly.
 

Ruffy99

2023-10-11 10:58:28
  • #2
So I explicitly asked again. It is indeed the case that the right to cancel exists without restriction at the start of construction. That means I could go to another bank at the start of construction and complete the entire financing through another bank. If the new bank then repays the amount, the old bank disappears from the land charge.
 

Schnubbihh

2023-10-11 12:38:54
  • #3


Which bank is that? I will soon be in a similar situation.
 

xMisterDx

2023-10-11 13:39:42
  • #4
What should one advise? If you now finance fixed at 4% and the interest rates are back at 2% in 2 years, you'll be annoyed. We're quickly talking about a thousand euros monthly, which you pay "too much" to the bank for another 8 years without any benefit for yourself. If you now finance variable at 4% and the interest rates are at 6% in 2 years, you could potentially lose your house because you can no longer afford the installments...

But how realistic is it that interest rates will be at 6% in 2 years? Unfortunately, you have to decide that entirely on your own; no one can make that decision for you. Even with an interest rate drop from 4 to 3% on a 10-year interest rate lock, you miss out on many thousands of euros that could have otherwise been put toward repayment.
 

WilderSueden

2023-10-11 14:12:04
  • #5
It's about the property, not the house. Completely different aspects dominate there...
 

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