Financing offer evaluation and question about mixed interest rate

Hello everyone,

Sorry for starting a new thread, but I now have concrete offers and am a bit confused about what is better. I have been advised by a realtor who is very nice and took a lot of time, and by a bank as a comparison. My house bank could not keep up with the conditions, so I am hesitant here whether I should enter into a deeper conversation again. The fixed interest period is very critical for me. Every mortgage lender advises me to choose the 10-year fixed interest period; you should repay as much as possible during that time, so that the burden afterwards would not be higher despite possible interest rates. Besides, everyone believes that interest rates will never rise that much again because the Eurozone could not afford it. 80% of borrowers would choose the 10-year term. Hmm... I personally feel more comfortable with a longer fixed interest phase, but that is of course more expensive. What is your opinion on that?

Now I have different offers:
Again the project: mid-terrace house 560k + realtor + additional costs, equity 150k
Loan volume 520k with a 20-year fixed interest rate:

1. From the realtor:
2 L-Bank components with 10-year fixed interest and 1 annuity loan with 1.73% effective for 20 years and 2% repayment (320k), resulting in an effective blended interest rate of 1.39% for the 20 years

Then from the bank:
1 L-Bank component with 10-year fixed interest + 1 annuity loan with 1.52% effective and 2% repayment (420k), resulting in an effective blended interest rate of 1.42 effective. The monthly rate here is 50 euros cheaper than in the first offer.

So, what confuses me now. Which offer is better now? The blended interest rate of the first offer is better, if only slightly. Still, the interest rate of the annuity loan is higher (after all 0.2%), yet the rate is 50 euros more expensive (almost 1700 euros).

I don't understand the logic here, but maybe I can no longer see the forest for the trees.

oh yes and then I also have the 10-year fixed interest rate: with all offers I come pretty much exactly to 1.0% effective, but I have one offer for the entire credit limit and another one which is a combination of 2 L-Bank modules and 1 annuity loan. What is your opinion here, is the 0.4%-0.5% interest surcharge worth it for the longer term or rather not? Then I wonder if the L-Bank modules are that great. The interest rates are good, but they only apply for 10 years.

As far as the fixed interest period is concerned, it's like gambling. No one will be able to make the decision for you without a crystal ball. We chose the golden mean with 15 years 2.5 years ago. In hindsight, I would have gone with 10 years so far. But I am not risk-tolerant.

yeah everyone says that...and in the end, it's probably actually a matter of philosophy. I have no idea, I will probably have to reflect on this again. I'm just wondering if the higher rate in the broker's offer could maybe be due to the commission?

How high is the repayment rate for the L-Bank in each case? Because one time it's 1 component and another time it's 2 components, so it's not comparable.

Regarding the fixed interest period, it really depends on your own risk tolerance. However, my impression so far has not been that 10 years is the standard.
You also can't compare your loan amount with someone who is financing 200k for an apartment. Personally, 10 years for the total amount in your case would be too much risk for me. A mix with the 10-year L-components wouldn’t cause me any headaches.

That's exactly how it feels to me as well. The 10 years would be more tangible to me if it were less credit. But with a house, it's almost unavoidable. And we were lucky. We are rather inexpensive here in terms of the purchase price. Unless you want 100 sqm. The L building blocks expire after 10 years. After that, 135k remain from it because you cannot repay them early. Therefore, it continues with 1.7% afterwards, and either I save the remaining amount for the L-Bank building block in parallel, or I have to take out a new loan contract for the remaining sum. With the bank loan, I am at least cheaper in total because less remaining amount is left from the L-Bank and also it continues for me with the annuity loan at 1.5%.