Are the financial resources really sufficient??

Exactly these 36,000€ I do not want to have to continue financing later at a significantly higher interest rate. I am afraid that the interest rate will then be 5% or higher...


Where do you find the calculator for private individuals??
I’m somehow blind...

Would a bank start with a lower repayment and then increase it after 10 years?
Wouldn’t I then also lose too much interest to the bank in the first 10 years?

You can calculate for yourself what the 5% interest increase would mean on that amount - I also had big concerns at first, but never actually worked it out.

Just do it - a 5% increase and then for another 20 years.

The risk is really manageable and surely allowed, because it won't make your monthly installments explode like that and maybe you'll win the bet after all.

If you can manage the installments and prefer full repayment loans, then go ahead! No one knows exactly where the interest rates will be in 10 or 20 years! Paid off is paid off. Refinancing also means that the house becomes more expensive in the final amount you pay. Pure calculation.

Interest rates are low, so you can set the repayment rate much higher than the loan interest rate. Just see if you can manage.

If you don’t need the KFW loan, your bank may offer you a similarly good interest rate. Not every KFW loan really pays off. The bank loan can become expensive during this time if you can’t pay high repayments. There are plenty of people who get into trouble after the KFW loan expires.

Therefore: Don’t let yourself be confused any further here. Sit down with your wife, calculate the offers from the banks, and discuss it with the bank you trust.

All the best!

Get in touch when you have everything settled.

I did some calculations to give an idea of the presumably incurred effort as well as the credit costs for the KFW follow-up financing. I assumed the €36,000.00 mentioned by Lexmaul79 with an interest rate of 4.5% and 1% repayment, full repayment annuity 10 years: monthly rate: €373.10.
Total cost: €44,771.79. Thus, the assumed KFW follow-up financing costs: €8,771.79.

A nice sum. After 20 years... I'll spare myself that now. It is not in a reasonable proportion to the KFW loan. After all, the costs of the first ten years must also be added.

You forgot that the KFW loan is subordinated - that is a big advantage and therefore it is still gladly taken despite the interest rate no longer being quite as favorable (although 1.25% in my opinion is still very cheap).

To be honest, I also don't understand how the amount is supposed to break your neck afterwards - with a total financing of 250,000 euros and more, it is just a part component.

Of course, high repayment at the beginning is great - whoever can afford it should definitely do it.

If not, then it of course costs money - whether you should really consider the final amount or just the monthly burden that you are willing to bear? As long as it is not an investment property, I would primarily always look at the latter value.

And where is the amount not in any proportion to the KFW loan? That’s how it is when the interest goes up - completely normal 10 years ago. Apart from that, inflation should also help - if it is there.

You forget that the annuity loan also needs to be repaid.

Example with your assumed €250,000:

Annuity loan: €200,000
Interest rate: 2.41%
Repayment: 2%

Annual special repayment assumed: €5,000

Term: 20 years

Results in: monthly payment of €735.00.
Remaining debt after 20 years: €26,280.74.

The KFW loan could be repaid with €265.00 at a maximum monthly load of €1,000.

I calculated with 1.25% KFW interest rate and a repayment of 5% for a term of 10 years and a loan volume of €50,000:

Monthly installment: €260.42
Remaining debt after 10 years: €23,386.05.

KFW follow-up financing:
I assume the following here: interest rate of 4.5%, repayment 7.5%, although the bank will have a say in that.

Monthly repayment rate: €233.86. Remaining debt after 10 years: €1,286.51.

If the special repayments are not made each year on the annuity loan, it looks as follows after 20 years:

Annuity loan remaining debt: €97,339.87
The remaining KFW debt really no longer matters there, you are right.

If I now compare a pure annuity loan, it looks as follows:

Annuity: €250,000
Interest rate: 2.41%
Repayment: 3.55%
without special repayment!
Monthly installment: €993.33
Remaining debt after 20 years: €17,778.28.

If I now compare the loan costs after 20 years, I come to the following result:

Pure annuity: €56,178.28

Mixed calculation with KFW, annuity with special repayment:
1. KFW costs: €4,635.05 plus follow-up financing costs of €5,963.72.
2. Annuity: €52,680.74.
Total costs: €63,279.00 plus remaining debt of €26,280.

However, only if the special repayment is made annually. Without it, it looks bleak.