Cancel the loan and accept a better offer?

Yes, we can revoke. Hence the question ;-) as far as it is concerned, it is not associated with any costs, except for the registration of the mortgage. But that would be covered by the loan broker. However, from the numbers, it really hardly makes sense... we are currently trying to influence our now financing bank to see if they would also allow the repayment rate change downwards.

Yes, we can revoke. That's why the question ;-) so it is not associated with any costs, except for the land charge order. But that would be taken care of by the loan broker.

But based on the numbers, it really hardly makes sense... we are currently trying to influence our now financing bank to see if they also allow the repayment rate change downwards.

to be honest, if you tell them after 2 years that you are financially struggling, they will hardly not adjust the repayment rate.................. just a hint ;)

to be honest, if after 2 years you tell them that you are financially struggling, they will hardly adjust the repayment rate.................. just a hint with ....

Yes, that may be true... but I don't want to rely on that. I only rely on things that I am sure of.

And it is clear that with the 30-year term we have €300 more available monthly. Now the interest rate for the 30-year condition has dropped to 2.33% effective, versus 1.89% for 20 years. That doesn't make much of a difference anymore. Wow... what a difficult decision

Yes, that may be true... but I’m reluctant to rely on that. I only rely on things I’m sure of.

And it’s clear that with the 30-year term we have €300 more available monthly. Now the interest rate for the 30-year condition has dropped to 2.33% effective, versus 1.89% for 20 years. That doesn’t make that much difference anymore. Wow... what a difficult decision

Basically, you’re just making it look better for yourself.

I just used a repayment calculator with the assumption you’re taking €470,000.

With a 20-year term, you pay about €107,000 in interest.
With a 30-year term, you pay about €166,000 in interest.

The difference of €59,000 over the 10-year period amounts to about €492 monthly.

So you want to keep paying €492 monthly "to the bank" after 20 years so you now (when you don’t even have kids etc.) have almost €300 more available.

I wouldn’t do it and would be happy with 1.89% for 20 years...

This is about the following consideration: right now we are still young and can repay a lot. But in 2-3 years we want to have children. Then one salary will initially be gone. For this period, I believe that 300€ is simply 300€. With one salary gone, 50% of the income disappears. Okay, there is still child benefit and childcare allowance. But I assume we will have losses of 1400€. And 300€ is already significant there.

We don’t have children yet, but everyone tells us: children cost a lot of money ;) And for this period we would like to have a solution.

I assume that we will neither have repaid the loan in 20 years (end of the fixed interest period so about 90k remaining) nor do I assume we will need 30 years. I think we will end up somewhere around 25 years, with special repayments. The charm is that with the 30-year loan we could also repay the KFW loan after 5 years and then have another 170€ available. After another 5 years, another 170€ could be available. That means after 10 years we would have a minimal rate of 1522€. That is the advantage of the 30-year solution. Here we would combine 2 KFW loans.

The alternative is now:

20 years 150,000€ at 1.78% and 20 years 300,000€ at 2.04 - in the mix this also results in 1.89. Advantage: With a lot of goodwill, we could have already paid off the 150k in 10 or 12 years and would then also have an about 700€ relaxed rate, thus would be similar to the 30-year loan. But only after 10 years.

But we want children in the next 2-3 years. Hence the consideration.

How did you solve this in your family planning?! Did you take this into account? If yes, how?

Just as a side note: [Betreuungsgeld] no longer exists!