MichaeI
2019-11-19 12:25:04
- #1
Approximately 1500 euros per month and 2 - 3 thousand euros special repayment per year.
Annuity loan or Riester home savings contract?
- Erstellt am 2019-11-19 10:44:15
kbt09
2019-11-19 12:46:43
- #2
I once calculated and came to 1497/month, then 380,000 annuity loans with special repayments of 3000 euros/year look like this:
TOTAL
380,000 repayment and special payments for about 20 years
46,232 interest for about 20 years, assuming refinancing similarly well after 15 years
-------------------------
426,232 in about 20 years, with no additional taxation and uncertainties, possibly legal changes regarding Wohnriester, etc. (think of legal changes that have taken place with direct insurance). End, finished, all done.
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With 2x Riester and 180,000 annuity loans and special repayments 3000 euros/year
Total:
226,800 for 25 years x 2x 378/month
180,000 repayment and special payments for 16 years
12,283 interest for 16 years, assuming refinancing similarly well after 10 years
----------------
419,083 total payments plus additional taxation Wohnriester etc.
TOTAL
380,000 repayment and special payments for about 20 years
46,232 interest for about 20 years, assuming refinancing similarly well after 15 years
-------------------------
426,232 in about 20 years, with no additional taxation and uncertainties, possibly legal changes regarding Wohnriester, etc. (think of legal changes that have taken place with direct insurance). End, finished, all done.
-------------------------------------------------------------------------------------------------
With 2x Riester and 180,000 annuity loans and special repayments 3000 euros/year
Total:
226,800 for 25 years x 2x 378/month
180,000 repayment and special payments for 16 years
12,283 interest for 16 years, assuming refinancing similarly well after 10 years
----------------
419,083 total payments plus additional taxation Wohnriester etc.
HilfeHilfe
2019-11-19 14:05:17
- #3
then clearly without Riester
Specki
2019-11-20 07:19:38
- #4
Interest rate fixed for 10 years: 0.81 %
If more risk-taking and if there is hope to possibly make more special repayments or to set aside something for the subsequent special repayment during the 10 years.
Interest rate fixed for 15 years: 1.14 %
If not so risk-taking.
Interest rate fixed for 20 years: 1.26 %
If very security-conscious.
Everything else would not be an option for me.
MichaeI
2019-12-04 11:11:35
- #5
I still have a question regarding the annuity loan.
Why do people generally not split the total loan amount into a shorter term with lower interest rates and a longer term?
In my example, if the total loan is around 430k, wouldn’t it make sense to fix the part that you pay off in 10 years only for 10 years?
Total loan: 430k
Loan 1: 150k at 0.81% for 10 years (and then put all special repayments into it so that there is preferably no remaining debt after 10 years)
Loan 2: 280k at 1.26% for 20 years.
The total burden would then be at 1400.
With Loan 2, not much would happen in the first 10 years, but as soon as Loan 1 is paid off, you could increase the repayments (provided this is possible free of charge).
Am I overlooking something? Is there anything speaking against this approach?
Why do people generally not split the total loan amount into a shorter term with lower interest rates and a longer term?
In my example, if the total loan is around 430k, wouldn’t it make sense to fix the part that you pay off in 10 years only for 10 years?
Total loan: 430k
Loan 1: 150k at 0.81% for 10 years (and then put all special repayments into it so that there is preferably no remaining debt after 10 years)
Loan 2: 280k at 1.26% for 20 years.
The total burden would then be at 1400.
With Loan 2, not much would happen in the first 10 years, but as soon as Loan 1 is paid off, you could increase the repayments (provided this is possible free of charge).
Am I overlooking something? Is there anything speaking against this approach?