Bullet loans & annuity loans combined - sensible?

Good morning, I don’t work on weekends like that ))

that should be an offer directly from Schwäbisch Hall (district manager) or a Volksbank

3 components are not quite uncommon. Given the current market situation (interest rates are really low!) it’s OK!

something comparable? I’ll take a look...

Exactly - Volksbank + Schwäbisch-Hall contract

so, I looked at the conditions elsewhere, then I don’t find the above structure "good" anymore but rather satisfactory to sufficient!!!
For example, with the full repayment loans (No. 3) I get it for under 1% for the 10 year term! Then question: if it’s paid off in 10 years, why the 10% special repayment??? Totally

another question:
why do you start with over 2,000 EUR monthly for the first 9.5 years, and then it goes down??? (1373 - 682 EUR)
wouldn’t it be better to have a constant rate.
or only an increase in 10-15 years (since you can assume you will earn more in 10-15 years)

if I calculate it like this:
9.5 years with 2002 EUR = 228,228 EUR
6 years with 1373 EUR = 98,856 EUR
then 57 months (almost 21 years) with 682 EUR monthly = 38,874 EUR
9x 7000 EUR special repayment = 63,000 EUR
Total repayment: 428,958 EUR
Total costs approx. 78,958 EUR

so something is not right here...

so if I calculate:
1. Bullet loan 100,000€ based on KfW loan with 0.75% interest + Schwäbisch Hall saver.
16 years and 7 months. Fixed effective annual interest rate for the whole structure: 1.18%
(is it a KFW loan, or just a bank loan at 0.75%????)
Closing fee: 1,000 EUR
Interest for the 16.6 years: approx. 6,500 EUR
monthly rate at 540 EUR

2. Bullet loan 150,000€ based on Schwäbisch Hall saver.
Term: 21 years and 3 months. Fixed effective annual interest rate for the whole structure: 0.97%
Closing fee: 1,500 EUR
Interest approx. 15,000 EUR
Burden: 21 years with 658 EUR monthly

3. Annuity loan 100,000€ incl. 10% special repayment
Term: 9 years and 5 months. Fixed effective annual interest rate for the whole structure: 1.57%
Total costs: approx. 8,000 EUR interest!
Burden monthly 365 EUR
+7000 EUR p.a. special repayment

so the rates are not right? or the interest not? ))

or is the special repayment already included in the 2,002 EUR monthly repayment???

very complicated

The 2002€ already includes the special repayments. So 7000€ / 12 = 583€ is already included there.
Here is my repayment plan – I took the numbers directly from the documents the bank gave me. Except the 7000€ special repayment, which I converted into a monthly rate for simplicity under the point "Raiffeisenbank". To the monthly rates add the closing costs you mentioned and the so-called security costs (I believe those are the costs for registering the corresponding land charge). These costs plus the interest then make up the total costs in the end.

1st - 113th month	113 months
KFW		€426.38
SH		€619.25
Raiffeisenbank		€957.30
Sum:		€2,002.93
114th - 120th month	7 months
KfW		€426.38
SH		€619.25
Sum:		€1,045.63
121st - 199th month	79 months
KfW		€691.00
SH		€682.00
Sum		€1,373.00
200th - 255th month	56 months
SH		€682.00

so,

slowly getting the picture.

so the first 9.5 years are the 2,002 EUR monthly with the special repayment of 7,000 EUR p.a.?
that means the actual installment then is 1,419 EUR monthly?
after that 6 years with 1,373 EUR monthly.
then another almost 5 years with 682 EUR monthly?

then the total repayment is:
first 9.5 years at 161,766 EUR + 63,000 EUR special repayment
further 6 years at 98,856 EUR
almost another 5 years with about 40,000 EUR?
then I still come to about 363,000 EUR; and not 385,000 EUR!

where is my thinking error??? please clarify...

Ok, so it's manageable...

then the repayment is 380,303 EUR if I skim through it like that... so only 30,000 EUR in costs (OK, the 5,000 EUR repayment subsidy from [KfW] is probably included there!).

Are the graduation fees for the SH included in the installment??? Or do the 2,500 EUR come on TOP?

Hello, the special repayments are a nice assumption. In reality, they are often suspended because some purchases come up. So for me, these are rather model calculations that do not necessarily apply.

Are they really fixed interest rates until the final maturity? Or calculated assumptions?

I would have a classic bullet loan offered + KfW funds. Otherwise, with too many components, you have the problem of refinancing and the priority in the land register. No one wants to be in the subordinated position

Yes, these are fixed interest rates and not assumptions

Are the closing fees for the SH included in the installment???
Or are the 2,500 EUR still on top?

They are still on top. Costs:
KfW: interest payable: €9,565.66 + other costs (closing fees + security costs + annual fees): €1,317 - interest income: €212.43 = €10,670.23
SH: interest payable: €14,518.13 + other costs (closing fees + security costs + annual fees): €1,975 - interest income: €334.89 = €16,158.24
Raiffeisenbank: interest payable: €7,902.30 + other costs (security costs): €273.00 = €8,175.30

This results in total costs of: €35,003.77

For KfW, a loan amount of €95,000 is stated, as the grant has already been deducted. Is that okay so far?

1) KfW: Debtor interest: €9,565.66 - other costs (closing fees + costs of collateral + annual fees): €1,317 - interest income: €212.43 = €10,670.23
2) SH: Debtor interest: €14,518.13 - other costs (closing fees + costs of collateral + annual fees): €1,975 - interest income: €334.89 = €16,158.24
3) Raiffeisenbank: Debtor interest: €7,902.30 - other costs (costs of collateral): €273.00 = €8,175.30

Results in total costs of: €35,003.77

so what one could do as a comparison:
1) KfW: Debtor interest: €6,182 + €195 (land register) + €2,337 SH (1,838 interest less 161 credit + 660 closing) = €8,714
2) Cooperative with SH = €9,555 interest + SH €5,324 (interest: €4,190 less €366 + closing €1,500) = €14,879
3) Cooperative with 10% special repayment (0.87% effective!)= €4,700 interest + €295 collateral = €4,995
with SH the nominal interest after 10 years is 1.40%
Total costs: approx. €28,600

monthly installment is tighter
1 year (KfW interest-only) thus moderate with monthly €1,165 (special repayment added, so €1,748)
2-10 years at €1,422 (special repayment added, so €2,005)
11-16/17 years at €1,728 until 05/2035
then still €1,200 monthly until 03/2036
and done.
so in 17 years instead of 21 years

another alternative would be:
if you anyway plan to spend over €2,000 monthly (the first 10 years!)
then €250,000 full repayment in 20 years (0.96% nominal, 0.98% effective), KfW 0.75/0.77%
burden: 20 years with €2,104 monthly
afterwards 11-20 years with €1,145 monthly
total costs also: €28,600
but there is no building society here, where the allocation point might change in 10 years. So 0.0% risk.

with the building society variant you always have to take care of it yourself, i.e. call after 5 years and ask whether it is ready for allocation on 30.06.2029, if not, you have to save more so that it works.
One should assume that in 10 years more people will use building societies than today, so the rating points for allocation are likely to be raised compared to the example calculations currently made by the banks/building societies!