Questions about the financing offer

136500,- after twenty years is too much. To be finished after another 10 you would have to pay off 13650 per year, that would still be without interest. That would come on top, which could easily be another 600 per year. The adventure would not be mine. Then just become a building society saver after all. Please also talk directly to a local bank. I don't really trust these brokers. They are after a signature. Your house bank too, but they don't want to drive you into misery. Karsten

now you are exactly at the point where we are currently failing as well. I have to agree with nordlys. What good is it to pay off for 20 years if the remaining debt is so high and the interest rate is a matter of crystal ball gazing. I would like to help you and offer an idea or solution! Then I would have exactly the urgently sought solution we currently need. We are currently also at the local bank. Last hope. You will only be able to manage your loan amount with a rate of about €1350 over 30 years.

and thank you for your suggestions.

I had already thought so.
It's reassuring to know that I calculated correctly.

We will probably have to look for a building savings contract or search for more equity.

I am rather negative towards building society savers. In our calculations, we did not find a single scenario in which a loan with a fixed interest rate over the corresponding period was not cheaper. We even had some already saved building society contracts that we cancelled accordingly. I also recommend first going to your local bank. We were offered about 0.25% better conditions at the Sparkasse and the Volksbank than those offered by the major brokers. We were told that for up to 15 years of fixed interest, the two banks mentioned are "flexible" with their loan interest rates since the loan is processed directly through the local bank. Perhaps such a scenario with a shorter and a longer loan would be interesting for you. Now back to your situation: are you really debt-free after the fixed interest period in the building society variant??? Why didn’t you consider a 30-year loan as an alternative? Otherwise, you are already comparing apples and oranges... I also don’t understand why the first repayment loan is cheaper despite a 5-year longer term? I also don’t understand the loan through the Investitionsbank SH, my gut feeling tells me it’s not good.

have you made progress with your consideration? Have you found a solution?

Hello everyone,

we have received an offer for a semi-detached house.

Here are the key data:

Plot: approx. 400sqm
House: approx. 125sqm
Price: 360,000
Location: Essen area

Included in the price:

[*]House EfW55 (turnkey including wall and floor work (including labor and materials))
[*]Plot
[*]Balcony and garage
[*]Property transfer tax and notary fees
[*]Additional construction costs
[*]House foundation

First my question:
Is the price realistic? Too expensive or should I expect more costs?

For the construction financing, a financial advisor was recommended to us, who is free of charge for us and would accompany us during the project.

He advised us (m30+ w31) not to use our Wohnriester for the financing.
The offer:

Interest fixed for 10 years:

Loan amount 300,000
Nominal / effective interest rate: 1.48% / 1.52%
3 components: 2x KfW 50,000 / 100,000 and an annuity loan of 150,000
Monthly rate approx. 1,000€
Calculated total term approx. 30 years

Interest fixed for 10-20 years:

same amount and same components:

Component / Loan / Nominal / Eff. interest / Fixed interest period
KFW #1 / 50,000€ / 1.4% / 1.41% / 10 years
KFW #2 / 100,000€ / 2.25% / 2.27% / 20 years
Annuity loan / 150,000 / 2.1% / 2.16% / 15 years

Blended interest: 2.03% / 2.07%
Monthly rate 1,015€
Calc. term: approx. 35 years
________________________

The offer from Wohn-Riester:

Components:
2x Wohnriester 100,000 and 50,000
KFW #1 50,000
KFW #2 100,000
Monthly rate 1,250€
Term approx. 25-30 years
For the KFW components it should be analogous to the above offer.
With Wohnriester there is a 10-year fixed interest of 1.7% and after the 10 years, a secured interest rate of 2% for another 13 years.

___________________

The question is which offer is better?
Is the financial advisor’s statement correct that Wohn-Riester is not suitable for repayment of the property?
Or is it more that the financial advisor earns if he mediates us to a bank?
But I think a Wohnriester advisor also earned from the contract conclusion.
So who can you trust?

Thanks in advance!!!

Best regards