Which financing model?

Hello,

Yesterday I was at a building fair. Deutsche Bank made me the following offer:

Equity:
€25,000

KFW 153:
€50,000, 10 years at 4.05% interest and 2.47% repayment; monthly installment (with repayment): €245 (for comparison purposes, is debited quarterly; calculation is confirmed by the repayment calculator at KfW)
Outstanding balance after the fixed interest term: €32,970 (also due to an initial repayment subsidy of €5,000 because of the efficiency value 40)

Annuity loan:
€110,000, 15 years at 4.3% interest and 1.5% repayment; monthly installment: €531
Outstanding balance after the fixed interest term: €75,320

Total to pay: €776

All in all, that sounds good. An early repayment is unlimited for the KfW loan. The annuity loan does not allow early repayment. If I wish, I could do that without a surcharge via a so-called cap loan. The interest rate corridor is between 1.75% and 5%. Currently, 2.5% interest is due. The repayment can be adjusted according to personal preferences. I would never finance the entire €110,000 via a CAP loan, but maybe part (€20,000?) could be financed that way. As long as interest rates are low, you put more into repayment; if interest rises, you reduce repayment. What do you think?

I wonder, however, if I - if I should finance through Deutsche Bank like this - can get out of the building savings and Riester contracts. I see fewer problems with the building savings contract. The Riester contract will probably be more difficult. At least the allowances (and the initial fee) would probably be lost.

Tomorrow and Wednesday I have more bank appointments. Then I will also talk, among others, with my house bank, where I originally took out these contracts. I will report back afterwards.

Best regards and have a nice Sunday,
HeTs

Sounds pretty good! With this offer, I would then check out more banks. Also try some direct banks. But you have reached your desired burden and are flexible when it comes to special repayments, at least on the KFW loan. Although I don't think much of the Riester home savings contract, I would try to keep the contract. Maybe you can reduce the rate a bit. Then you will only get the "extremely high state" allowance proportionally, but you won’t have to repay any allowances. What kind of interest do you have on your credit balance? If the home savings contract becomes due in a few years and you have two incomes, you can afford the installments. Maybe a renovation is due then. Or an extension. No idea. If it has a somewhat good interest rate, consider it a reserve for the house.

Best regards Ille1975

Your CAP loan is a good thing, it can help you reduce the overall financing costs a bit. The amount depends on your own risk assessment. If your financing at an interest rate of 5% does not go on the "Better", I would calmly do it. If you are young, have no children, and with some probability a second income is available, you can also take a bit of a "gamble", as long as the risk remains manageable.

best regards Ille1975

Well, that was probably nothing today.
The Volksbank rejected a similar model because they lack the necessary collateral.
If you deduct incidental construction costs and other small expenses from a total value of €185,000, you get a loan value of approximately €170,000.
With a targeted loan financing (in whatever form) of over €160,000, that would approach 100% financing. Without additional collateral, the credit department would not grant approval. And of course we don’t have that (logical, otherwise we would use more equity).
A monthly installment of about €800 would have been possible even with Volksbank. Even a 30-year financing at a 15-year condition. Really frustrating! :mad:
Let’s see how the house bank argues on Wednesday. However, my hope is fading because almost all banks want these securities. Deutsche Bank only made a rough calculation over the weekend as well.

There is nothing wrong with selling the roughly estimated Deutsche Bank offer as a ready-to-sign loan agreement. The first interest rates mentioned are often just trial rates, if one persists stubbornly. How important is the €800.00 limit? A KFW-40 house consumes very little in ancillary costs. Possibly run €30,000.00 through a cap loan. Liquidating the Riester home savings contract just to definitely get below €800.00 may not be so sensible. You do need those few reserves already?

....30% of the construction costs can still be parked with KFW. Program 124. There is the option with a 35-year term. There you will then reduce the repayment. Otherwise, refresh the equity a bit through an overdraft and pay it back over 1-2 repayment-free KFW years.