Quick Check of Construction Financing Conditions

Where do the nearly 50k equity suddenly come from?

You are not allowed to compare 15-year fixed interest periods with 20-year fixed interest periods. My experience shows that the increase from 15 to 20 years is actually often 0.5%. In these low-interest times, this apparently is not enough profit for the bank. I personally know really good conditions for 20 years only with high equity (>30%) and also very good creditworthiness, so that the risk for the bank is almost zero.

With 15 years commitment in the same structure, it is 1.92% - now I'm unsure whether one should rather do that?

The example with the 1.8 over 15 years without equity has been confirmed to me by several people that it won't work, because you always need something like a private loan in addition. It's through Sparda and they often initially look like that and afterwards it always says that it doesn't work without equity, which is also logical.

We had something like that too. It's difficult without any equity. But then you should also carefully consider whether you want to build at all. I think 10% should be available to cover non-value-retaining costs (taxes, etc.). Otherwise, the bank charges dearly for them.

But why is this important for you if you already have 10% equity?

Not important anymore, I just had it in mind as an "offer" without equity and that's why I'm now surprised that the conditions are worse with equity. But I think it simply wasn't serious.

And what did you have? The conditions like in my example?

So at the moment our question is whether 1.92 for 15 years or 2.33 for 20 years. What do you think? When can you get out early again and take out a new financing if the interest rates haven't gotten worse? There's something about after 10 years or something like that, right?!

Yes, special termination right after 10 years