Annuity loan vs. home savings contract - comprehension questions

2018-01-17 09:12:03

Should be called a small batch. 50k€.

Here I would have also gotten 1.08% for 10 years. But I wanted to play it safe in case the special repayment only covers the repayment after 10 years for the KFW loan.

The goal is still to repay the 150k€ after 10 years.

All at 79.xx% loan-to-value.

2018-01-18 08:37:45

Here I would have also gotten 1.08% for 10 years. But I wanted to be on the safe side, in case the special repayment is only enough for the repayment after 10 years for the KfW loan.

This brings me to an interesting question. We have KfW for 10 years and a larger loan for 20 years. Now I want to, on the one hand, as you do, repay the KfW loan after 10 years. On the other hand, it makes more sense to make special repayments on the large loan (higher interest rate). And won't KfW make me an offer at the end of the fixed interest period? Should I save cash over the next ~8 years to then, depending on the situation, either repay KfW or extend KfW and make special repayments on the large loan? Or should I continuously make special repayments on the large loan and extend KfW in any case?

2018-01-18 08:51:29

That brings me to an interesting question. We have KfW for 10 years and a larger loan for 20 years.

Now, on the one hand, I would like to repay the KfW loan after 10 years, as you do. On the other hand, it makes more sense to make special repayments on the large loan (higher interest rate). And won't KfW make me an offer at the end of the fixed interest period?

Should I save cash over the next ~8 years and then, depending on the situation, either repay the KfW or extend the KfW and make special repayments on the large loan? Or should I continuously make special repayments on the large loan and then extend the KfW in any case?

Special repayments. Bring more effect. Just enter it into Excel and see what you save by saving versus special repayment. Then you just have to fictively recalculate the remaining debt of the KfW afterwards.

2018-01-18 10:22:53

Can the KfW loan be extended with KfW after the initial term? Is there any information about that?

2018-01-18 10:24:57

The financing would be approved. 20 years at 1.68% (large tranche), 15 years (no tranche) at 1.48%, and the KfW at 1.70% for 10 years

Why didn't you leave out KfW and integrate the KfW amount into the small or large tranche?

2018-01-18 10:46:56

Because I can make special repayments on the KfW loan in unlimited amounts and plan to repay the loan in 7 years. In addition, the effective interest rate after the "Auszählung" of the subsidy is 1.08%.

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Annuity loan vs. home savings contract - comprehension questions

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