Where can I get cheap construction financing?

Hello, I have inherited some money and now my dream of owning a house could become reality. However, I would still need to borrow about €150,000 from the bank. Where can I currently get cheap construction financing, and what do you think of the online offers?

Hello,

I have inherited some money and now my dream of owning a house could become reality. However, I would still need to borrow about 150,000 € from the bank. Where can I currently get cheap construction financing, and what do you think of the online offers?

If you have about 20% of the purchase price, it is no problem to get money at a reasonably low cost. Important: no Desario, appraisal fees, or provision fees. There must be a 0 or a dash in the contract for that. 4.3% effective interest rate is easy.

Regards

if you have about 20% of the purchase price, it is no problem to get money relatively cheaply. important, no desario, appraisal fees and provisioning. there must be a 0 or dash in the contract. 4.3% effective interest is easy.

Hello Geier, we also want to build soon and already have the land that we can contribute (so as collateral, fully paid).

- Can you tell me where one can get the 4.3% effective rate, for approximately what term and fixed interest period?

Or do you mean that almost any bank would offer that currently, like Sparkasse, Deutsche Bank, etc?

That would be great

Best regards

hello,

Deutsche Bank, Commerzbank and Citibank are not worth going to. You can get 4.3% effective for 10 years. Money will become cheaper in 2009. Bankers will tell you otherwise. Go to your house bank if it is not one of the above. important are zero costs with 100% payout, no risk insurance and such gimmicks. Do not make the repayment rate over 1%. To explain this advantage to you, I would have to write several pages, that is too much for me.

the Deutsche Bank, Commerzbank and Citibank are not worth going to.

Hello, thanks already for the info

We think we'll try, in parallel to the house bank (none of the ones mentioned), with a credit broker. He also gets a commission, which costs something (and is reflected in the effective interest rate), but even then he often gets cheaper offers from the same banks that we would check ourselves. He also has more credit programs up his sleeve than the banks, or ones that they are reluctant to offer on their own.

You can get 4.3% effective for 10 years. Money will get cheaper in 2009. Bankers tell you otherwise.

Of course, they tell you something else. Don’t worry, I compare thoroughly, and would also have contracts checked by the consumer advice center first.

Go to your house bank. If it’s not one of those mentioned above.
Important are zero costs with 100% payout, no risk insurances and that kind of gimmick.

There are risk life insurances that you can take out according to the amount of your loan, and the advantage is that the insurance sum does not stay the same but decreases roughly with your installments!

- I consider this not to be money thrown away, insofar as I can have a very favorable effective interest rate because I have more security to offer; and if you also take out such insurance with a cheap and good direct insurer, it really costs very little money. I have already informed myself about this in advance.

More important to me, however, is a disability insurance (BU), with premium exemption in case of incapacity to work; so that I can be sure that the installments can still be paid if something happens to me.

I think a good BU would also make an impression on banks, and beyond that, I would have secured my family (not just the mortgage) as well.

Don’t make the repayment rate over
1%, to explain this advantage would require writing several pages, which is too much for me.

Hmm, I can’t understand this statement; because the higher the repayment rate, the more I repay the loan, and the less remains outstanding after the fixed interest period, which I would then have to refinance, and who knows at what interest rate then? That could get more expensive.

Sure, the higher the repayment, the higher the monthly installment; but shouldn’t that rather depend on the current interest rates (and how much you can spare monthly – at most 30% of net income)?


Do you live in Germany?

- So maybe you can briefly explain that to me about the low repayment in keywords: All my financing advisory books and the consumer advice center financing advice say exactly the opposite on the topic of repayment-interest rate!


Best regards,
Honigkuchen

hello,

good brokers get their commission from the financiers.
with banks and the like, only talk to the boss, he gets
--no commission-- and is the only one who knows the pain threshold regarding interest rates.
at 4.3, the bank earns about 200 %
the thing with the repayment 1 %
but you have to calculate it yourself.

you take 300000 = 4.3 + 1 % = X = 30000 repayment = 270000 in 10 years
3000:12 = X repayment sum per month
2 % repayment = 100 % increase in the repayment sum, etc.
means a lot of effort for a little less debt.
in 10 years, the money will not be worth as much as it is today
then pay the saved repayment cash or via overdraft, that is cheaper
than a long contract even if the interest seems higher,
you save 10 years of inflation this way
hope you can follow me without a detailed explanation.
ps. I have been advising my family on money matters for about 20 years
everyone has a house or several.

regards