Construction project 400k: How much to add floors?

Only poor people and those who can’t do math need 25 years.

Well then, I’m glad to finance with a 30-year fixed interest period And precisely for that reason to be able to calculate well, and I wouldn’t spontaneously call myself poor either (although that is always relative)

...but to get back to the topic. Interest rates are usually quite high with less than 20% equity, and above 40-50% they won’t ultimately improve much. After 10 years, you are left with such a large remaining debt that an interest rate increase can cause you serious problems. Certainly, there are situations where shorter fixed interest periods are worthwhile (the last 10 years, for example), but if you’re already starting to sweat at a 0.X% higher interest rate for a longer fixed period, what will it be like when the rate increases by a few percentage points...

At the beginning, our wishes did not match the total amount we were aiming for. We ended up sitting down and asking ourselves what we want to afford each month, not how much I want to spend in total. Think about that carefully and then go to the bank and ask how much credit they will give you for that... That makes more sense than speculating about a total amount and increasing it by, for example, 50,000 euros when you don’t even know what that means for your daily life...

Are you serious? You really have to be able or willing to afford this fixed interest rate with a reasonable repayment of 3% or more. It's actually the opposite. The less installment I can afford, the lower the fixed interest rate and repayment.

Of course I am serious. Such "full payers" are like mobile phone insurance or dental supplementary insurance. Long terms cost money, and those who can think economically prefer to invest the money in repayment. Unfortunately, many cannot afford to think economically because they cannot bear the interest rate risk. Those who can afford it finance as cheaply as possible and only accept higher interest rates for greater flexibility in repayment (=special repayment). This would help the original poster much more if he could still set aside 1,000 euros per month with his - not exactly high - income.

Well, then I'm glad to finance with a 30-year fixed interest rate And exactly for that reason being able to calculate well, and I wouldn't spontaneously call myself poor either (although that is always relative)

And do you really want to pay it off for that long? If yes, I don't have much economic understanding for that, since your income is high and you haven't taken out much credit. If not, I have even less understanding for that, because you are then paying for a long fixed interest rate that you don't even use. Overall, your financing is a relatively bad example to serve as a "role model" for the OP. With your > 250k equity, you were generally offered favorable interest rates, even for 30 years.

Most of the time, it doesn't make financial sense to reduce your risk to zero. This applies to financing just as much as to insurance.

If I were in your position, I would get offers for ~450k with a 10-year term. Only poor people and those who can't calculate need 25 years

For my part, I am glad that I don't have to worry about this topic for the next 28.5 years. And the 10 or 15-year options were not really better in conditions either (0.3-0.5%). With the 20-year full repayment component, we are even cheaper (in terms of interest) than 15 years with RS.

Of course, I am serious. Such "full repayment loans" are like mobile phone insurance or dental supplementary insurance. Long terms cost money, and those who can think economically prefer to invest the money in repayment.

Overall, your financing is a relatively bad example to serve as a "model" for the OP

If you have enough equity. But that is not the case with the OP, and then due to the loan-to-value ratio, the follow-up financing is also not really cheaper (I don’t see any initial repayment of 3% or more (on top there is still the interest rate adjustment)). So not a good suggestion for the OP either.

In 10 years, I personally also see the ECB key interest rate at 3.x%

Of course, I am serious. Such "full amortization" loans are like mobile phone insurance or supplementary dental insurance. Long terms cost money, and anyone who can think economically prefers to invest the money in repayment. Unfortunately, many cannot afford to think economically because they cannot bear the interest rate change risk. Those who can afford it finance as cheaply as possible and only accept higher interest rates for greater flexibility in repayment (=special repayment). This would help the original poster much more if he can still set aside 1,000 euros per month with his - not exactly high - income.

Yes, and what next? Customers accept an interest rate surcharge to have peace of mind.

Absolutely sensible in low interest phases if you do not have the option to make special repayments.

Other forms like building savings contracts for the residual debt after 10 or 15 years also cost money.