DimaNDS
2019-04-04 13:43:51
- #1
Hello,
we currently live in a house that we have financed. The loan has an 1.61% effective interest rate, which is not bad at all, and can be flexibly repaid between 1-10% (currently 10%). In addition, there is the option of a 5% (9,000€) special repayment which we have always used so far. Thus, we have repaid the original loan of 180,000€ down to 87,200€ today. The fixed interest period runs until October 2025. If we continue to repay at this rate, we would be finished relatively quickly.
Now we want to build a new house and would like to take out financing for this again.
Approximately 300,000€ are needed, which we would currently get for about 0.75% effective interest rate.
If we rent out the current house, we are able to repay a total of 2,800€ per month.
Now the question arises as to what we should do with the current loan.
Is it cheaper to repay the new loan as much as possible and possibly reduce the other loan to 1% repayment, or should we first pay off the old loan and keep the new one’s repayment as low as possible? Or maybe in a certain ratio? Or even take out the new loan 87,200€ higher and repay the other one in advance?
How does one calculate this?
Unfortunately, I haven’t found much about this on the internet, but I am also not very familiar with the subject.
Is there anyone here who can calculate this? What information do you need for that?
we currently live in a house that we have financed. The loan has an 1.61% effective interest rate, which is not bad at all, and can be flexibly repaid between 1-10% (currently 10%). In addition, there is the option of a 5% (9,000€) special repayment which we have always used so far. Thus, we have repaid the original loan of 180,000€ down to 87,200€ today. The fixed interest period runs until October 2025. If we continue to repay at this rate, we would be finished relatively quickly.
Now we want to build a new house and would like to take out financing for this again.
Approximately 300,000€ are needed, which we would currently get for about 0.75% effective interest rate.
If we rent out the current house, we are able to repay a total of 2,800€ per month.
Now the question arises as to what we should do with the current loan.
Is it cheaper to repay the new loan as much as possible and possibly reduce the other loan to 1% repayment, or should we first pay off the old loan and keep the new one’s repayment as low as possible? Or maybe in a certain ratio? Or even take out the new loan 87,200€ higher and repay the other one in advance?
How does one calculate this?
Unfortunately, I haven’t found much about this on the internet, but I am also not very familiar with the subject.
Is there anyone here who can calculate this? What information do you need for that?