Annuity loan vs. home savings contract - comprehension questions

2017-12-28 09:32:23

Now I actually understand where the mistake lies and why the annuity 1.65% + building savings contract 1.25% appears more expensive than just the annuity with 2.04% over 20 years

The financing need after 14 years still amounts to 310 thousand, but I did not reduce the amount by the saved sum of 128,504. After this, the financing need is only 183,469. This amount can then be repaid with 1.25% interest and a repayment rate of 8.93% within 10 years. Thus, in addition to the costs of 78 thousand for the initial annuity, the 12.4 thousand + the closing costs of 3.3 thousand = 93.7 thousand total costs

This would make me 20 thousand cheaper than with the assumed annuity with 2.0% for 20 years and 6% thereafter.

Doesn't everything actually speak for the building savings contract from this consideration?

Somehow I can't imagine that... Then everyone would finance like that.

Isn't there an interest surcharge for the 1% repayment?

2017-12-28 09:40:49

Somehow I can't imagine that... Then everyone would finance like that.

Isn't there an interest surcharge for the 1% repayment?

The bank thus secures itself for the entire loan term

2017-12-28 09:56:39

A factor not to be underestimated is of course the assumption that in 20J one must pay 6% follow-up interest. If one believes that, the [Bausparer] is better, provided the figures here are correct. However, it also takes chances and carries its own risks.

2017-12-28 09:59:47

Especially since the bank including the [Bausparvertrag] earns handsomely in the first few years. At the end of the fixed interest period, there might be a flood of money and the [Bausparvertrag] is not needed. I'm not a fan of paying massive upfront fees anyway. Then I'd rather have a very long fixed interest rate.

2017-12-28 14:48:10

@ Alex: The costs amount to 97,900 € assuming the loan runs for 20 years with a 2.04 interest rate and 3% repayment. Thus, even without follow-up financing, there would be additional expenses.

: The bank actually earns a solid 78 thousand € in the first 15 years. The building savings contract, on the other hand, earns less with 12.4 thousand € + closing costs of 3.3 thousand €. However, under the above-mentioned circumstances, it would be even more in the first 20 years + follow-up financing, which also costs money, albeit not at 6% interest.

Or am I overlooking something here?

2017-12-28 19:36:29

How old are you then? Usually, it's done the other way around. First, pay off as much as possible and then when you are sorted out at xx years, reduce the repayment and pay off comfortably until the end. With your setup, you have to go full throttle for 25 years. Especially after 15 years since you have hardly paid anything off until then.

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Annuity loan vs. home savings contract - comprehension questions

Zaba12

HilfeHilfe

Alex85

HilfeHilfe

Wolf22

Zaba12