Use more equity or pay off higher?

Hello everyone,

following situation: There is €30,000 equity. You now have the possibility to receive a sum of money amounting to €40,000. This would increase the equity to €70,000. The disadvantage is that the monthly income would decrease by €450.

An existing property is to be purchased. Including incidental costs, new equipment, etc., the purchase price would amount to €270,000.

What would be better for the financing?
- Increase the equity?
- Or pay off more with less equity?

These are all very vague details, but I still hope a tendency can be given.

Best regards

That cannot be answered if you don’t know how long you have to forgo the 450€ salary. Otherwise, just calculate.

450/monthly is 5400/yearly. It takes 7,xx years to reach the 40TEUR. Further details can only be answered if you explain how such a decision is made.

hello finisher,
if you do not use the equity of 40000€ it will cost you about 95€ per month in interest expenses.
best regards