Our financing offer

Hi,

we have already been to various financing advisors, including Interhyp and Zinsmacher from Mannheim.

About us:
Me 29
Wife 27
Income together at least €4000 net per month (depending on shift allowance and secondary service, a few euros more).
I have €1500 left every month (when the rent is gone).

Desired rate about €1200-1300/month

Equity €50,000
Financing amount €332,000 (total thus €382K) here the €25,000 ancillary construction costs are still missing, he forgot those.

Zinsmacher has now made us the following offer: (It's a mix of financing and a building savings contract)

1: KFW loan - Loan €100,000 - 1.50% / 1.53% - fixed interest for 20 years - monthly rate €354.55
2.1: VR Bank R.N. - Loan €232,000 - 1.35% / 1.43% - fixed interest for 11 years - monthly rate €261
2.2: BHW building society - Building savings sum €232,000 - saving period 11 years - monthly rate €650

Thus a monthly rate of €1265.55

2.1 we pay for 11 years (apparently without repayment), during this time we also pay €650 per month (2.2) into a building savings contract.
After these 11 years we will have a balance of €80,000.
If this is the case, €80,000 will be deducted from the €232,000 and the remaining loan of €152,000 will be paid through this building savings contract.

From the 11th year on, this is then €1300 per month (plus the KfW then).
After 22 years the entire loan (except KfW residual debt, believe €30K) would be paid off.

Interest costs of the whole would be about €55,500 after 22 years.

I hope I have explained everything reasonably well. Feel free to ask if you have questions!
But I don’t think I have more info.

What do you think of the offer? I think it sounds really great. At least better than the normal loans we have been shown so far, where after 30 years there was still a few thousand euros residual debt.
Well, here the €25,000 ancillary costs are still missing, I guess that the whole thing will just be postponed by 2-3 years.

Thanks and regards
305er

What is usually misleading here is that the rate increases from the 11th year onwards. If you want to compare it exactly with a loan, you would also have to include an increase in the rate accordingly there after 11 years. Then the results sometimes look different.

You should then also assume an interest rate increase of x% or calculate from which interest rate increase which loan would be worthwhile.

What do you think about the offer? I think it sounds really great. At least better than the normal loans we have been shown so far, where after 30 years there were still a few thousand euros of remaining debt. Well, here 25,000€ of ancillary costs are still missing, I guess the whole thing will just be pushed back by 2-3 years.

Why do you think the offer "sounds really great"? Why do you believe that "the whole thing will just be pushed back by 2-3 years" if you need more money? Let them explain that to you with the equity and the loan-to-value ratio.

What were the normal loans that you have been shown so far?

Why do you think the offer sounds "really great"?

Because it fits into our planned monthly costs and we would be finished after 22 years.

Why do you believe that "the whole thing will simply be postponed by 2-3 years" if you need more money?

Because I think the extra €25,000 we still need will push us back by 2-3 years until we have paid everything off.

Let them explain to you about equity and the loan-to-value ratio.
What were the normal loans you have been shown so far?

A term of 30 years and a monthly rate of €1200-1300 and after 30 years a remaining debt of €0-7000.

Another one of those lousy building savings contracts again.

Haven't you been offered a solid deal on the loan amount before?

You have income, equity, and already 100K KfW. And yet a building savings contract is still being squeezed in?

Yes, he did it to pay off the whole thing as quickly as possible