Sell old house, build new one, how to finance?

  • Erstellt am 2015-10-16 08:42:52

berater1

2020-05-24 21:04:34
  • #1


Option 1: Loan with 5 years fixed interest rate
Especially in uncertain Corona times, I consider option 1 with “only” 5 years fixed interest rate attractive. You are not exposed to a big risk, it has a short term, and in case of rising interest rates, after 5 years you can invest the entire 250,000 euros. Because at the end of the term, you are free to decide how you repay. You can extend and include your full 250,000 euros (free of charge) in the extension.

If the house (theoretically possible) loses value after 5 years, a generally very cheap interest rate can be possible for the remaining amount, since the collateral will probably be above 80%. This will allow dream interest rates anyway.

The biggest advantage is the flexibility and the quasi non-terminability within these 5 years.

Option 2: Bridge financing
As mentioned by other users, bridge financing can be possible. Since a bridge financing is usually concluded for a maximum of 24 months, certain risks can still arise especially now during Corona times (deflation, inflation, short-time work, low buyer interest, etc.).

Practical note:
Loan: The best contact for loans is an independent broker. Current interest rates in your case should be around 0.4-0.5% effective interest (rough estimate).

For bridge financing, the contact person is the house bank. Bridge financing will probably be much more expensive. Unless you are regular customers at your bank and it is willing to compete for you. Then a cheap financing at the house bank would also be possible.
 

HilfeHilfe

2020-05-25 05:58:46
  • #2
The thread is from 2015! You are 5 years too late
 

berater1

2020-05-25 11:08:28
  • #3


Doesn't matter. A useful answer remains a useful answer

Besides, this post is quite high up in the forum, so it still has relevance for the users.
 

HilfeHilfe

2020-05-25 14:24:59
  • #4

Nonsense

no one reads that crap anymore
 

berater1

2020-05-25 14:54:16
  • #5


How primitive is this answer. Instead of contributing content, it’s rather user bashing. Sorry, zero respect for such people!
 

seat88

2020-05-25 15:41:33
  • #6
Says someone who has been logged in since just before eight yesterday. You obviously know quite a lot...
 

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