10 years (0.99%) or 15 years (1.40%)?

Hello dear forum,

The starting point is taking out a loan of 465,000 euros.

Basically, we had already mentally decided on a 15-year fixed interest rate at 1.40% (with 3% repayment). However, our bank advisor has now informed us of his new 10-year conditions at 0.99%. That obviously sounds very tempting, although we would also consider a mix of the two conditions. I am somewhat more risk-tolerant than my wife.

It's not about paying less monthly but we would keep the rate (with higher repayment). Basically, we can gladly pay off over 30 years since we are both just under 30 years old.

What would you do? 50/50 (15Y/10Y); 75/25 or all over one term? What should be considered regarding Sondertilgung if we fix part for 10 years?

Best regards,

Lukas

465,000 at 0.99%? Well then...

465,000 at 0.99%? Well then...

?

So far, I only have the information that he would also recommend a part to us for 10 years since the interest rates there would be under 1% for us. So I don't think we could fix the entire amount for 10 years (for the interest). I was just interested in your opinions.

We also had the option of 10 for 0.77 or 20 for 1.4. So I’d rather sleep more peacefully for 20 years. Interest rates could look like they do now in 10 years or be at 5%... Who knows.

A serious answer is difficult to give here. 1.7k rate - how much % of your net income is that? Are there any other reserves/assets? Why do you only want to choose 10Y? That is a gamble with interest rate risk. You can do it, but you should be aware of the significant risks. At 10Y there is still a remaining debt of 300k. At 15Y of 230. Without further information, I’m with Lumpi. With that amount, I would ask about 20Y or longer. Please don’t be blinded only by the low interest rates.

If you borrow that much, it depends on how long you need to repay it. I don't know your salaries or planned inheritance, etc. But basically, you should go for at least 20 years. Unless you both earn a net income well over 10,000 euros per month together or have a large gift coming up...