Due to low interest rates, more and more young families are taking the plunge to build their own home. One of the most important pillars for this is a solid construction financing. As a rule, prospective home builders should deal with construction financing after they have found the plot of land and planned the house. It is also important for this phase of the house purchase not to rush and to compare well the different offers of the banks. As a rule, the customer is king!
The following topics are important when planning construction financing:
- What should be the maximum amount I can afford to charge?
- Interest rates and fixed interest rates
- Loan amount
- Payment method of the installments
What should be the maximum burden, what can I afford??
Before I take out a loan, builders should list exactly what the future house will cost. Here, the ancillary construction costs should also be included and any costs for the land. In addition, you have to list exactly what income and expenses I have as a builder or. as a family have. Ideally, prospective builders keep a budget book over a longer period of time to get an overview, because most of the time you are wrong with an estimate. The next step is to compare income and expenses. The resulting difference shows the maximum possible financing potential. This should not be exhausted under any circumstances. It is always important to have reserves. There is no rule of thumb for how much of the financing potential should actually be taken out as a loan, but optimally one still has sufficient buffer and plans for the long term, so that the loan installments can also be repaid permanently and not only in the current situation.
Interest rates and fixed interest rates for construction financing
The first step is to obtain quotes from various banks for the amount of the loan to be used. Here we should look at the interest rates and the additional costs that the respective bank charges. Some banks add additional fees when granting loans, although these are no longer allowed. Loan agreements should be examined carefully.
In addition to the interest rates themselves, the interest rate lock in the contract with the bank is also very important. In most cases the fixed interest period is 10 or 15 years. In general, the lower the interest rate, the more sensible it is to choose a long fixed interest rate, because then the low interest rate is guaranteed for a longer period of time. However, in exchange for the guarantee of the lower interest rate for a longer period of time, you usually have to accept a small premium in interest rates. With the maximum possible loan that can be taken out, one should also consider that at the end of the term of a loan, the loan is usually not yet fully repaid. The monthly financing rate should therefore be calculated so that the installment can be paid without problems even with a higher interest rate.
Loan amount
Is one clear about income and expenses resp. if one has thought about the financing potential, it goes to the computation of the loan sum. That is the sum, which the owner as credit and/or. The maximum loan you can take out. How the loan amount is calculated exactly can be very well reproduced at the construction financing calculator of Baufi24. With Baufi24 a calculator is made available, with which one can compute on the basis the entered data exactly, which load on the owner to come. Here you can specify an interest rate or use the interest rates deposited at Baufi24. In addition, you can choose whether to calculate a classic loan with repayment or a loan with repayment suspension.
Payment method of the rates
When paying installments, you can choose between annual, quarterly or monthly payment method. In most cases you pay back the installments monthly. To calculate the monthly burden, the previously calculated maximum loan must be divided by 12.