miniflexalex
2017-01-03 13:38:05
- #1
Hello everyone,
I wanted to present to you in this post the financing offer for my future property and hope for many responses, whether criticism or approval.
A few key data points at the beginning.
Income:
Net household income per month is 5000 euros (He 4000€, She 1000€ as currently working part-time due to parental leave).
He receives 20,000€ annual bonus (gross) and a full 13th monthly salary in addition to the above-mentioned 4000€ net.
Expenses:
About 2000€/month for insurance, food, clothing, electricity, toiletries, TV, telephone etc.
1080€/month car financing (still running for 4 more years)
We currently live rent-free
Future property:
245,000€ purchase price
20,000€ additional costs
40,000€ renovations
=305,000€
Equity 50,000€
Bank offer:
255,000€ financing amount
1.28% fixed for 10 years
2,000€ monthly rate
3,000€ special repayment per year to be debt-free after 10 years.
Remaining debt without special repayments approx. 30,000€
The problem here is that the monthly fixed costs would consume our entire income (without bonus and Christmas pay).
And one thing beforehand, I will not sell the car (even though it would certainly be the smartest thing in this situation).
Now I have received a new offer from the bank, the proposal is now to somehow include the car in the home financing, it would look like this:
305,000€ financing amount (50,000€ for the car)
1.28% fixed for 10 years
2,000€ monthly rate
8,400€ special repayment per year to be debt-free after 10 years.
Remaining debt without special repayments approx. 80,000€
With this option, I would have about 1000€ monthly reserve since I no longer have to repay the car financing separately. To be debt-free after 10 years, the special repayments naturally have to be higher, but this should not be too problematic due to my annually paid bonus. And if there is a year in which no special repayments are made, then there remains a small manageable residual debt... not as bad as I find it.
What do you think of the second offer? What speaks against including the car in the home financing?
Thanks in advance, I look forward to constructive criticism, suggestions for changes, or the like.
I wanted to present to you in this post the financing offer for my future property and hope for many responses, whether criticism or approval.
A few key data points at the beginning.
Income:
Net household income per month is 5000 euros (He 4000€, She 1000€ as currently working part-time due to parental leave).
He receives 20,000€ annual bonus (gross) and a full 13th monthly salary in addition to the above-mentioned 4000€ net.
Expenses:
About 2000€/month for insurance, food, clothing, electricity, toiletries, TV, telephone etc.
1080€/month car financing (still running for 4 more years)
We currently live rent-free
Future property:
245,000€ purchase price
20,000€ additional costs
40,000€ renovations
=305,000€
Equity 50,000€
Bank offer:
255,000€ financing amount
1.28% fixed for 10 years
2,000€ monthly rate
3,000€ special repayment per year to be debt-free after 10 years.
Remaining debt without special repayments approx. 30,000€
The problem here is that the monthly fixed costs would consume our entire income (without bonus and Christmas pay).
And one thing beforehand, I will not sell the car (even though it would certainly be the smartest thing in this situation).
Now I have received a new offer from the bank, the proposal is now to somehow include the car in the home financing, it would look like this:
305,000€ financing amount (50,000€ for the car)
1.28% fixed for 10 years
2,000€ monthly rate
8,400€ special repayment per year to be debt-free after 10 years.
Remaining debt without special repayments approx. 80,000€
With this option, I would have about 1000€ monthly reserve since I no longer have to repay the car financing separately. To be debt-free after 10 years, the special repayments naturally have to be higher, but this should not be too problematic due to my annually paid bonus. And if there is a year in which no special repayments are made, then there remains a small manageable residual debt... not as bad as I find it.
What do you think of the second offer? What speaks against including the car in the home financing?
Thanks in advance, I look forward to constructive criticism, suggestions for changes, or the like.