Assessment of financing conditions

Hello everyone,

we have received an offer that sounds very attractive to us - what do you think about it?

60k equity (land)
30k equity (additional costs)
240k loan
860 € annuity
2.27 % effective
Full repayment = 34 years fixed interest period
We want to finish earlier, but this long fixed interest period takes away the big pressure to repay as much as possible in the next 10-20 years. Since we have two small children, the extra repayments will probably be low in the next 10 years. After that, certainly more.

Please no evaluation of the total term - I only want to know if the interest rate for this period sounds similarly attractive to you.
20 years should "cost" 1.9 %, 25 years 2.17 %.

Thanks!

Since there are hardly any offers with this term as full amortization loans, a market fairness check is relatively difficult. However, since the interest rate curve indeed flattens somewhat after 15 years, this might make sense with regard to the loan-to-value ratio.

The condition doesn't look bad, but I wonder if, considering the planned special repayments, you are buying a security that might not actually be necessary. But that is something you have to decide yourself.

But on another note.... for 240k you don't get that much house today. Not that a larger follow-up financing threatens.

Thank you for your assessment. That already helps me a lot! Your concerns are also understandable to me. That I might be buying interest rate security that I later don't even need is something I'm aware of. We are almost done with the complete sampling and have planned buffers everywhere – we are building without frills and probably at the lower standard (as I had to learn here – I actually don't perceive it that way at all. We are not making any compromises). Thank you!

Conditions are fine. One should note that the interest rate difference between 25 and 34 years fixed term is only 0.1%... We are financing with >50% equity and have nearly 2% interest at a 30-year fixed term, although we are still comparing.