Loan possible and if yes, how

Hello, I am new here in the forum, but I have been reading along for a while... :)

Well, I want to get straight to the point:

My girlfriend and I have now decided that we want to buy a prefabricated house with land. After what felt like 1000 conversations with salespeople from all the well-known companies, we have now focused on one house builder. The house would cost us about 140,000,-

We already have a plot of land in sight for about 40,000.- With all connections etc. it costs 50,500.- Now the conversation with the financial advisor is still pending.

Key data:
Total costs 190,500,-
Loan request 195,000,-

Our combined salary about 2,900,- net
So far so good, but now comes our/my problem.

Unfortunately, I still have a loan from earlier to pay off :mad:, (19,000,- 475,- monthly), however, my girlfriend has about 35,000,- equity from an inheritance. I also have a savings plan, but I still have to pay into it for 1.5 years to get to 10,000,-. In addition, we will contribute about 8,000 in personal labor (drywall) to the price.

Now to my question, would it be more sensible for us to use her capital to pay off my 19,000, or to include the 19,000 in the loan amount? I would of course then pay off more accordingly...

Or would we possibly not get a loan in the first place?

Best regards Thomas

Hello Baggers,

I recommend not paying off the existing loan with equity, but rather continuing to pay the installment of 475 EUR. The remaining term can't be particularly long anyway.

The home financing can currently be presented at about 3.33% nominal interest rate (including [KfW-Mittel]). The monthly payment including repayment then amounts to 572.62 EUR.

In the opposite case, the amount would have to be additionally considered in the home financing because the equity would then be lower. And that would mean extending the term too much for the part that was previously a personal loan. This would significantly increase the interest expenses.

Best regards

M. Thiemann

Okay, thank you very much!

But basically, despite the existing loan, there is nothing against another loan?

Regards