The Financial Realities of Taking on a 100% Loan-to-Value Mortgage

@KavonH,

let’s talk plainly:

You need around 100% loan-to-value, so around 5% pa interest is due, around €14,000 in interest per year. In addition, 2% repayment for another €5,600.

Now you are just married, but after you buy and move in, the children will be there in a few years and the follow-up financing will collapse because you will then be a single earner.

If you don’t want to wait any longer today, such a future awaits you.

Because of the €280,000, only €56,000 has been repaid, €224,000. If we assume the same interest rates in 2033/34, then €12,000 interest is due + €4,500 repayment is due.

If we assume today that you earn €5,600, with 2 children and a seizure allowance of €3,600, you only have €2,000 left to service the debts and all additional costs of the house,
Like taxes to the city, insurance,…

I also notice that the savings process so far is either too short or too low to get used to future consumption restrictions. Because the apartment furnishings are still missing, where will the money come from?

I don’t see any further savings happening so far! Where did the €50,000 to €60,000 for the kitchen and furnishings come from? Financed at around 8-12% pa?

On the subject of Schufa

If you’ve shattered your Schufa, what credit rating do you still have? If it is 80%, the waiting time will probably last years and you can finally save the extra €2,000 for practicing. How to keep money together and get your first follow-up financing in the next 15 years despite having children.

I would like to describe it differently, but the information cannot provide a better result.

bruno69