And why not a simple annuity loan? When combined with a home savings contract, you have to awkwardly inquire about the effective interest rate (to ideally calculate it yourself). In the case of Riester, it is given in my opinion, but unfortunately only "before taxes". So just compare the prices (of the loans), then you will see ...
From that perspective, at the current time, an annuity loan would probably be best. You could basically keep the one big home savings contract with 50,000 euros running or just have it on the side, in order to then flow it into the loan with a prepayment, for example, in case of rising interest rates. Because the home savings contract might then have a better interest rate after, say, 10-15 years, when the fixed interest period of the annuity loan has expired.
Regarding the Riester contract, as you said, everything is clearly explained. Only when I think about having to pay the interest during retirement with a monthly contribution or, if it’s even possible by then, to repay it all at once, I cannot come to terms with it. Whether state subsidies or not. When the time comes in 40-50 years, we will certainly have enough problems with the pension, so one should actually be debt-free by then. That’s how I see it.
I am not a fan of financing through Riester, life insurance, or newly concluded home savings contracts. With Riester, there are one or two pitfalls (What happens in the event of a divorce? [although I didn’t read whether you are married]; unclear future taxation). Life insurance – it hardly generates the return you have to pay in interest for the unpaid loan.
A home savings contract that was already concluded in advance (so that no additional fees have to be paid) is not a bad thing. We have a similar starting situation – only that our home savings contract has been running a bit longer. We will use the credit balance of the home savings contract when the KfW fixed interest period expires and thereby completely pay off the KfW loan in 10 years. This will then give us more flexibility to increase the repayment (prepayment) for the other loans. Should any major repairs arise on the house within the first 10 years, the home savings contract will be used for that. Then the remaining KfW loan must be extended accordingly.
Of course, you could take out a forward loan. With it, you secure the current interest rate for your needs in "X" years against an interest rate surcharge. The longer the point of loan drawdown lies in the future, the higher the interest rate surcharge. However, you should consider the current political situation and how this, as well as interest rates, might develop. But no one can advise you out of a crystal ball – especially with a three-year view. I have a personal opinion on this – but it’s just mine.
Regarding your question, I am not yet married (planned for next year along with the first child). But as mentioned above, Riester is completely out of the question for me. The interest repayments in retirement due to the residential promotion account just don’t make sense to me. In old age, you should be debt-free and not start paying something off again then. In case of death, the remaining amounts to be paid are passed on to the children, etc.
Concerning the home savings contracts, we now have two that have been running for a while and also a new one from 01/14. The new one, as you also said, could really be used as a buffer if not too much has been saved yet. Possibly, as I mentioned above, after the fixed interest period of a loan and a potentially much higher interest rate than the home savings contract has, I could imagine using it to refinance another loan.
I hadn’t really dealt with the forward loan until now. From that point of view, you could maybe wait until 2015 to see how the interest rate development continues and then perhaps still take out a forward loan. Yes, you said the crystal ball well. Actually, one could say that interest rates can’t get any cheaper except to fall towards zero, and that will 99.9% probably not happen.
Here’s a good example of a forward loan:
"For freezing the interest rates, providers usually charge an interest rate surcharge of about 0.01 to 0.03 percent. This percentage is charged for every month the borrower signs the contract in advance. The longer it takes until the loan is drawn, the higher the nominal interest rate. Example: A customer takes out a forward loan with a 10-year fixed interest period three years before the due follow-up financing. The nominal interest rate is 4.95 percent, the interest surcharge 0.01 percent. Overall, he pays interest of 5.31 percent on his loan amount over 10 years."
- If I now take a current offer with a fixed interest period of 25 years at a nominal interest rate of, for example, 2.57%, and add the above-mentioned 3 years, then I would be at a nominal interest rate of 3.65% with a forward loan. Example from Dr. Klein @ Zinsentwicklung.de
- What I also read at Finanztip:
"At the end of the agreed fixed interest period or at the latest after ten years, however, you can easily switch to another bank."[/I]
That would mean that if you secure interest rates for 20 or 25 years, you can still switch after 10 years should the interest rates drop again?
I unfortunately can’t judge whether that is good or bad as a layperson.