Hyponex
2019-11-21 10:28:17
- #1
I would keep the KfW in, because what many people forget about the 153 program is the grant.
That means, whether €5,000 or more, in the end you repay the loan without costs. Because thanks to the repayment grant, only €95,000 has to be paid back, and since that flows after completion, the interest on the €95,000 has to be calculated long-term.
That means, in total with interest, you pay back less than €100,000 here. That’s why the 10-year fixed interest rate is OK, because the money is practically cost-free.
Anyone afraid of rising interest rates should save €35,000 over 10 years (building savings loan then at 1-1.25% for years 11-20) or if you can only save €20,000, it would then be at about 2.3% or so...
That means, whether €5,000 or more, in the end you repay the loan without costs. Because thanks to the repayment grant, only €95,000 has to be paid back, and since that flows after completion, the interest on the €95,000 has to be calculated long-term.
That means, in total with interest, you pay back less than €100,000 here. That’s why the 10-year fixed interest rate is OK, because the money is practically cost-free.
Anyone afraid of rising interest rates should save €35,000 over 10 years (building savings loan then at 1-1.25% for years 11-20) or if you can only save €20,000, it would then be at about 2.3% or so...