Offer for the financing of our construction project

I have not received a mixed interest calculation. Is it even that easy to calculate? One KfW loan has a fixed interest rate for 10 years, the others for 15 years. Sparda Ba-Wü would charge a surcharge because of the loan-to-value ratio, but the interest rate would still be under 4% effective. The Ing-Diba is nominally at 4.1% - but effectively at 4.23%, plus an additional 900 euro closing fee. Somehow we are still undecided whether the offer is really that good.

Dear Mr. Thiemann,

something just occurred to me. A consultant said that it is currently not so easy to calculate with the KfW loans, as the conditions will change on 07/01/10 - and possibly also the interest rates. Do you think the KfW interest rates could get worse? Should one hurry?

Thank you very much!
Regards,
wg

Hello WG310,

you should free yourself from Sparda due to the principle of regionality. It definitely doesn’t come into question.

Honestly, I find the closing fee exaggerated. Your broker already receives a commission of 1% on all loans from Ing-Diba. He doesn’t necessarily have to charge an additional brokerage fee of 0.5%.

I have never done it like that with Ing-Diba financings because these financings with Ing-Diba are really easy to implement.

Now I have recalculated which conditions would alternatively be available.

This is how your financing could also be structured:

The KfW loans have slightly higher interest rates, but the large construction loan is significantly cheaper (despite the 15-year fixed interest period).

The loan of EUR 180,000 is secured by a building savings contract as repayment substitute, into which EUR 180 are paid monthly. You can still increase this rate as you wish.

Kfw 70 50,000
2.95% nominal
3.94% initial repayment
10 years fixed interest
287.08 euros monthly

Kfw homeownership pr.
3.80% 100,000 euros
1.45% initial repayment
15 years fixed interest
437.50 monthly

Bank loan 180,000
3.84% nominal
1.2% repayment via building savings contract
15 years fixed interest
756.00 euros monthly

monthly total rate = 1,480.58 EUR
blended interest rate = 3.80% effective

blended interest rate of your existing Ing-Diba concept = 3.84% effective (without the brokerage fee! - with brokerage fee = 3.87%)

Best regards

M. Thiemann