Restructure ongoing home loan - increase later for new construction

  • Erstellt am 2021-12-10 11:00:11

sonnenallee

2021-12-10 11:00:11
  • #1
Hello!

We want to build a house in two to three years. We already have the plot of land in sight.
The situation is that we already own a property, want to sell the house, and thus bring in equity.
At the moment, there is a home loan of €100,000 / 35 years, with a fixed interest rate of 2.4% for 20 years, then variable.

The conditions don’t seem particularly good to us. Additionally, the husband is now earning more.

Our consideration is whether refinancing might make sense. It will also get interesting when the loan for building the house needs to be increased, perhaps requiring interim financing. Since both of us earn more overall than when we bought the first house, a shorter term and a variable interest rate might be cheaper!?

Is it then more advisable to go to banks soon and talk about refinancing and further steps before building the new house, or better to stay with the current bank and renegotiate with them when increasing the loan?
 

Hausbautraum20

2021-12-10 14:23:54
  • #2
€100,000 for 35 years? Is that correct?

How long has the financing been running? After 10 years, I would cancel given your interest rates.
 

driver55

2021-12-11 11:00:07
  • #3
With the previous information, no one can do anything. Describe the situation, the plan a bit.
 

HilfeHilfe

2021-12-11 11:14:43
  • #4
Hello, refinancing now would mean that the bank has to agree. And it does not have to! First ask, then dream. Furthermore, I do not understand the purpose of the refinancing. You commit yourself to the bank for the new construction.
 
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