Does the financing offer roughly fit?

Hello,
I would like to give a little feedback on my financing offer.

We are planning a single-family house KFW 55 with a garage for approx. €425,500.

About us:

Man: 28 years old, approx. €2,450 net in public service, fixed until 2027.
additionally a monthly payment from insurances of €450 net lifelong.

Woman: 29 years old, approx. €2,050 net, permanent position in public service

Both not civil servants.

No children at the moment, but roughly planned in about 2 years.

Equity:
Land purchased for €75,000, notary and property transfer tax already paid.
Money: approx. €93,000 to be used

The car is 2 years old and was paid in cash.

Required loan: €335,000
Divided into 2 different loans:

KFW loan: €100,000, effective interest p.a. 0.33%, repayment: 4.04%, remaining debt after 10 years €59,242.26
Will be paid off completely after 10 years.

Bank loan: €235,000, effective interest p.a. 1.53%, repayment: 3.30%, fixed for 25 years.
This loan offers the possibility of 5% special repayment.

One consideration is to make the €235,000 loan only for 20 years with a remaining debt, with a monthly burden of
approx. €900-950. Since the KFW loan would expire after 10 years, we could use the "saved money" as special repayment and so
we should be done with the house after 20 years. However, we would only do this if the interest rate becomes noticeably better.

Is this consideration sensible or rather not particularly smart?
What do you think generally about the data, does it fit or is there a major flaw?

Thanks

20 years inquiries. Even if you don't finish completely, the remaining debt should be manageable. I would accept that to get the better interest rate. The 5 years less should make a difference. The 1.53 is not that great. Were you with a broker or is that just the house bank?

Salaries each pcs. 4? Are there any special payments?

I find the repayment somewhat high if an income is lost. Possibly lower it a bit and rather save for special repayments.

Otherwise, everything seems well thought out.

Hi, What I forgot to mention is that we are unmarried. Therefore, paragraph 1 applies, and she receives extra payments of about €1500 net per year that are not taken into account. A wedding would therefore bring a little more financially due to allowances, the same applies to the topic of children. The repayment would be roughly €1300 plus additional costs. Our ongoing expenses are rather low but in our opinion we still live very well. We expect to need €2000 per month for the house including a small reserve savings contribution. Regarding the income, 40% is already a lot but we prefer to be "debt-free" quickly rather than putting the money into stocks etc. Nevertheless, despite the 40%, it is still possible for us to set money aside for retirement provision (stocks, classic pension contracts etc). So we have thought long about what we can afford and have both come to the conclusion that we can manage it this way.

Hello, with children the belt is tightened. But you know that.

Hi,
What I forgot to mention is that we are unmarried. Therefore, paragraph 1 applies and she receives additional payments of about €1500 net per year that are not taken into account.

A wedding would mean a bit more financially due to allowances, the same applies to the topic of children.

The repayment would be roughly €1300 plus additional costs.
Our ongoing expenses are rather low but we still live, in our opinion, very well.

We expect to need €2000 per month for the house including a small reserve savings contribution.

Regarding income, 40% is already a lot but we prefer to be “debt-free” quickly rather than continue to invest the money in stocks, etc.

Despite the 40%, it is still quite possible for us to set aside money for retirement provision (stocks, classic pension contracts, etc.).

So we have thought long and hard about what we can afford and have both come to the conclusion that we can manage it this way.

Personally for me, but hey that's purely subjective, the relative and absolute burden would be too high. Especially in times of such low interest rates, you don’t really ‘save’ that much if you repay quickly. Get an offer with 10% extra repayment - then you will be more independent from the bank even with children.
In our financing, we also only have the minimum repayment of 2% and additionally save in funds / or make special repayments through the additional salaries.