Current experiences with interest rate conditions

Hi!

How do you generate these partial quotes? First of all: Since I mentally wrote off BV´s a long time ago, I cannot guarantee the accuracy.

The allocation date is already set beforehand. It can only be postponed if the savings payments for the building savings contract are not paid as agreed?

Nope. The required number of points can be unilaterally increased by the BSK at any time - that used to be a real plague at BHW.

Well, the clarity thing is a matter of opinion - some people lose track as soon as they have more than 2 things at the same time, others keep an overview even in the most complicated situations - you can’t generalize that, everyone has to know that for themselves.

Arrogance comes before the thingamajig. The former WVK Tandem and Tridem tariffs at Wüstenrot already brought experts to their knees.

If interest rates rise significantly again - e.g. (caution: just an example) in 2008 the overnight money rates were around 4% - then I’m not stupid enough to end my cheap loan, which also brings me tax advantages...

Capital gains are only tax-free to a very limited extent and interest is not deductible for single-family houses.

I don’t know the repayment rate after allocation offhand, but the monthly burden stays the same, right?

Could be - no idea. Then the burden from the accumulation phase should be well above 1 or 2% of the loan amount, right?

Besides, you can make special repayments of any amount at any time in this second phase (repayment phase of the building savings contract) - not just 5% p.a.

That was always the case - after all, you’re supposed to benefit from the low-interest money for as short a time as possible!

But which model is best for which individual financial and financing situation can’t be judged in general anyway.

That’s 100% true! Building savings pre-financing is judged by experts like this: It doesn’t have to be bad in every situation.

2 questions at the end: How long is your BV financing supposed to last? Have you ever added up your payments over the entire term and compared them to an annuity loan?

Best regards,
TomTom.

Hi again!

How do you generate these partial quotes?

Copy and paste the "Quote" commands *g*

Arrogance comes before the thingamajig.

That was not arrogance, but a statement of fact. I did not mention with a single word where I would place myself - and certainly not where anyone else would.

The WVK tandem and tridem rates at Wüstenrot at the time have already brought experts to their knees.

Then I would never sign such a contract! If I don’t understand something, I learn it – and if I can’t learn it, then I stay away from it.

Maybe – no idea. Then the burden from the Ansparung should clearly be over 1 or 2% of the loan amount, right?

The Ansparung of the building savings contract (without interest on the TA-D.) is 1.8% p.a. for me

Two questions at the end: How long is your BV financing supposed to run?

Around 30 years

Have you ever added up your payments over the entire term and compared them to an annuity loan?

Of course I have. If I take the conditions from ostsee now (3.02% effective), then compared to my financing I would save 4.5 years and about 65 thousand euros.
But unfortunately that has the catch that no one guarantees me this interest rate fixed for 30 years.

If I now take my financing numbers (total volume, monthly installments) and calculate an annuity loan with the conditions from ostsee (10 years fixed interest, 3.02% effective), then the interest (with the same rate and total term) after 10 years should be max. 5% effective.
If it is, then the financings are identical. If it is lower, then my variant is worse; if it is higher than 5% effective, then my variant is better.

It’s like a bet – and I bet that the interest rates in 10 years will be >5% effective. Fine, the bet is on...
Let’s wait and see.

Regards
Micha

Hi!

Copy-and-paste of the "Quote" commands *g*

What:confused:?

30 years and €65,000 additional costs - my goodness!

However, I did not mean in comparison to the "Baltic Sea conditions," but to an annuity loan with at least 20 years fixed interest rate and the same monthly burden.

If I don't understand something, I learn it - and if I can't learn it, then I keep my hands off it.

That's the problem - usually one BELIEVES to have understood it:D.

Best regards,
TomTom.

BTW. Wouldn't you rather continue your argument in private? Tom merely warned about a complex financing. Whether you understand the construction or not is irrelevant to others. Others might not understand it and sign something that was well sold to them. Therefore, you should explain "such" tips better so that the overall picture becomes clearer.

On the topic. I got 3.74 nominal for 30 years. For 10 years it would have been 3.03 nominal, so my break-even interest rate is similar to yours at 4.8%. However, at that time (in 10 years) I only would have made a 12,000 EUR loss if the interest rate stays below 3%. In that case, I can switch.
Will you be out of this story after 10 years?

(PS: I didn't claim your financing is bad – just complex, so it carries more risks of overlooking something. That's why my sincere interest.)

30 years and €65,000 additional costs - my goodness!

Additional costs compared to the conditions from ostsee!
If you conclude with a 20-year fixed interest rate, you will not get 3.02% eff. Currently (according to the internet) the conditions are at 3.73% eff.

That means with this interest rate and the same installment, the financing would be 1.8 years shorter and save me €14,000.

I am not interested in the 1.8 years, and I gladly pay the €14,000 to have the security. Because even after 20 years I still have an incalculable interest rate risk. It is significantly lower than with a 10-year financing, but if the interest rates in 20 years are >8.4% eff, then I lose money.
At 8.4% in 2032, I would say that is a 50:50 chance. Could be, could not be. We will see.
Interest rates in 10 years (2022) >5% is, in my opinion, very likely!

However, I did not mean compared to the "ostsee conditions," but to an annuity loan with at least 20 years fixed interest rate and the same monthly payment.

Yes, but at what interest rate?
That depends on the length of the fixed interest period. You don’t get 20 years fixed at 3.02% – and if you do, then please tell me where :eek:?

Regards
Micha :cool: