Compare financing offers

Would you please set the conditions again?

Sure.

The offer looked like this:

25 years full repayment annuity loan
Nominal interest rate 2.80%
Fixed interest period 25 years
Loan amount €200,000
Monthly installment €930
Remaining debt €0

+ 25 years KFW loan
Nominal interest rate 1.65%
Fixed interest period 10 years
Loan amount €50,000
Monthly installment €67, after one year €210
Remaining debt €33,500

= Mixed interest rate 2.59%
Monthly installment €1,140

Yes, of course.

The offer looked like this:

25 years full repayment annuity loan
Nominal interest rate 2.80%
Fixed interest period 25 years
Loan amount €200,000
Monthly payment €930
Remaining debt €0

+ 25 years KfW loan
Nominal interest rate 1.65%
Fixed interest period 10 years
Loan amount €50,000
Monthly payment €67, after one year €210
Remaining debt €33,500

= Mixed interest rate 2.59%
Monthly payment €1,140

I would assume

würde ich annehmen

Yes, we are currently also leaning towards that option. One more question though: What if, in 10 years, after the fixed interest period expires, the KfW extends our loan at an interest rate of - just a guess - 5%? Wouldn't we be in an awkward position then?

Well, you have to look at this in a differentiated way. On the one hand, 30k is not an amount that should give you headaches, and you will receive a follow-up offer from KfW. The interest rates cannot rise so much that the interest on a 30k debt hurts you.

On the other hand, you hardly have any alternatives for the 30k. Ordinary private loans generally carry significantly higher interest rates, and construction loans from other banks will likely be denied to you since most banks only start at 50k.

If you refinance with a construction loan from another bank after 10 years, however, a new land charge would also be required, and the costs for this will significantly increase the effective interest rate.

Yes, we are currently also leaning towards that option. One more question about it: What if, in 10 years after the fixed interest period expires, the KfW extends the loan to us with an interest rate of - just guessing - 5%? Wouldn't we then be in a bad position?

You wanted to make special repayments, right?

Save €2,000 for 10 years = €20,000, the rest from petty cash.

you wanted to repay early, right?

2,000 € saved for 10 years = 20,000 €, the rest from the petty cash.

That is an excellent idea! That's probably how we'll do it. Then the KfW is naturally back in the running. Unfortunately, our financial broker has to send another offer. However, they also make quite a good profit from it.