It's not about whether one understands the matter oneself... Everyone knows why they need a loan....... Most of it is secured by legal regulations... I also spoke about the formation of the monthly rate.... that is simply not the same...
100,000 euros at 1% from Sparda-Bank (already now for building plot) results in 250 euros monthly with 2% repayment, term 10 years
240,000 euros via Z15 loan from L-Bank with 0.5% interest and 2% repayment results in 500 euros monthly, term 15 years
140,000 euros as supplementary loan from L-Bank, term 25 years, full repayment loan, i.e. it is fully repaid in 25 years. 2.39% interest and 3.08% repayment, monthly rate 650 euros
That means 250+500+650 = 1,400 euros mandatory rate plus additional costs for the house.
In addition, we would aim for an extra repayment for the Sparda-Bank (since only 10 years term) of 400 per month. That would be 1,800 euros/month plus additional costs.
After 15 years, we would still have 165,000 euros outstanding from the Z15 loan.
In addition, the 650 euro rate for the supplementary loan runs completely for 25 years.
What do you think about this?
How would you secure the 165,000 euro follow-up financing in 15 years?
I would structure today's loan situation so that you do not need a follow-up financing. Rather increase the 25-year loan and reduce the 15-year one. When the Sparda-Bank loan expires, you would then also have room to make extra repayments on the long-term loan.
Alternatively, I would reduce the repayment of the 25-year loan and instead service the 15-year loan more.
2nd alternative: Instead of a 25-year loan, take out a 30-year loan. The reduced repayment also gives you leeway for the 15-year loan.
We have made every effort to avoid ending up in an uncertain situation in 10 or 15 years with today's interest rates. Otherwise, it can turn out to be very unpleasant.
And where is the secret in that now? Of course, you have to consider all key figures, but then it's just simple 1+1, right? I don't understand the problem right now.
If you only take the loan and the interest into account, without considering the term/outstanding balance/etc., then it's clear that you can't make a comparison.
Besides, we would aim for a special repayment for the Sparda-Bank (since the term is only 10 years) of 400 per month. That would be 1,800 euros/month plus additional costs.
But 400 is not enough to completely pay off the Sparda. You would have to put in about ~625 every month to get to zero.
Otherwise, after 10 years you would still have 29,000 euros outstanding (with the targeted 400€).
Does the Sparda not offer a longer term; e.g. also 15 years? Or is that too unattractive?
Then you could secure the entire outstanding loan with a good building society savings contract over 15 years.
Then you could secure the entire outstanding RS with a good home savings contract in 15 years.
In my experience, home savings contracts are no longer attractive today. The bank also offered us a combination of a loan and a home savings contract. A loan with 1.4% interest and subsequent coverage through a home savings contract with 1.3% interest. The effective interest rate for this combination was 1.76%. Comparable loans were significantly cheaper. The higher effective interest rate is mainly due to the fact that you pay into a home savings contract (for which you receive "no" interest on the deposits) while on the other hand you pay interest for a loan that you hardly amortize. Compared to a loan where you start amortizing from the beginning and thus pay less interest over time, the loan is often cheaper...