Financing Land & House - 2 Different Loans

The question is, is there a paperwork battle here? Isn't it a very simple matter? Financing 90k with 1.25% interest with 1 year fixed interest rate.

The question is actually how high the costs per month would be regarding prepayment penalties or similar. Or whether every bank pays off the loan without additional costs.. I am still very, very unsure about that.

The question is, is there a paperwork hassle here?

And it is still questionable whether the bank will release you from the contract...
And what if not? Then the 1st priority in the land register is occupied.

The advisor said: No problem, you can also have the loan taken over by any other bank...

So I think this will also be contractually fixed.

I have no idea what other banks do here. The first ranking will practically be redeemed if the loan is taken over by another bank.

The answers can only be found in the crystal ball. 1. The termination fee (VE) depends on the current market situation (for statutory calculation, reinvestment interest rates of the Bundesbank are relevant (BuBA yields). If you want to terminate without selling the property, the bank can a) refuse or b) set an arbitrary price for the repayment). 2. Just calculate an example for yourself: €75,000 as the required loan to buy the land. ==> Costs €412.5 per quarter as a variable loan (€1,650 p.a.) or €938 p.a. with fixed interest. The BuBA yield for reinvestment is at -0.14%. Simply put, the bank (in the statutory calculation) compares your lost earnings to the reinvestment interest. The current extreme result is that the termination fee is often higher than the interest still to be paid for the remaining term. And yes, this situation is completely okay, as this calculation was exactly enforced by consumer protection in legislation. You lock in for 2 years and want to get out after one year because you are building. Then you pay €938 interest for the first year and perhaps an additional €1,000 (the bank can calculate however it wants in this case - does not have to comply with the statutory regulation) termination fee. So total costs of around €1,900. With variable financing you get out cheaper.