Comparison of financing proposals - decision aid

Hello everyone, thank you very much for your feedback! Great!

I also tend to option 1, as special repayments are possible and thus the remaining debt after 20 years is manageable.

I have received an updated offer for option 1. Additionally, I submitted this offer to BW Bank and received a very good alternative, which is only valid until Friday.

Offer 1:

Allianz Life
Loan amount 327,500
Fixed interest period 20 years
Nominal interest rate 1.64 %
Effective annual interest rate 1.67 %
Repayment 2.12 %
Rate 1,026.17 €
Special repayment 5 %
Provision-free period 12 months
Repayment rate change twice free between 1 % and 4 %

KFW
Loan amount 100,000
Fixed interest period 20 years
Nominal interest rate 1.25 %
Effective annual interest rate 1.27 %
Repayment 2.86 %
Rate 342.73 €

Offer 2:

BW Bank
Loan amount 327,500
Fixed interest period 20 years
Nominal interest rate 1.56 %
Effective annual interest rate 1.59 %
Repayment 2.2296 %
Rate 1,034.25 €
Special repayment p.a. 10,000 €
Provision-free period 12 months
Repayment rate change twice free between 2.2296 % and 4.2296 %

KfW
Loan amount 100,000
Fixed interest period 20 years
Nominal interest rate 1.50 %
Effective annual interest rate 1.53 %
Repayment 2.75 %
Rate 354.55 €

With offer 2, the discount for the KfW loan is cancelled, but the main loan has a better nominal interest rate. What do you think about the two offers?

Thank you very much for your feedback!

Best regards
Björn

Question: Are you even able to contribute 10,000 EUR or even 15,000 EUR as a special repayment each year?

Intuitively, both offers hardly differ overall.

It only gets clearer with detailed calculations.

Pencil...

Costs Variant 1)
Bank 81,800 euros
KFW 17,200 euros

Costs Variant 2)
Bank 76,700 euros
KFW 20,800 euros

Both variants are calculated up to the respective fixed interest period without considering fees and rounded commercially to 100 euros each.

Offer 2 is therefore marginally cheaper. In addition, the outstanding debt with offer 2 after 20 years is about 6,000 euros lower.

However, you pay for this with a monthly rate that is 20 euros higher and the still high but lower special repayment option of 20,000 euros compared to variant 1, but you could increase the repayment rate more.

All in all: variant 2 seems to me to be the overall better option if you do not want to use special repayments well over 10,000 euros in the first few years.

Hello Toxic,

thank you very much for your feedback!

At the moment, €5,600 net per month is available. My wife works part-time.

10 - 15 TEUR is still a lot of money, and if you cannot afford the special repayment, a substantial remaining debt will still be left at the end of the fixed interest period.

If I calculate the financing proposal (30 years) from Thread 1, the costs would amount to €133,600. An additional 10 years of fixed interest would cost me about 36 TEUR.

However, even without a special repayment, I would have €0 debt at the end of the term.

From your point of view, would 30 years be possible? Do I still have other levers with a term of 20 years? Increasing the repayment rate to 3% would already significantly reduce the remaining debt.

Thank you for the feedback!

Björn

Every euro repaid early is saved money. This always applies in principle. At the moment (actually, I never saw it before) I see no reason to choose such a long fixed interest period.

So calculate for yourself whether it is worth it to you.

I come to 142,900 TEUR for the 30-year offer as a full repayer in 30 years with the same loan amount.

Of course, you now have an unknown in the form of the 10-year interest rate in 20 years for the remaining debt.