Financing offer evaluation and question about mixed interest rate

I have now taken the trouble to calculate this for the first 15 years.
(This is also not 100% accurate, because you first have to have the 5000 closing commission, or you would have to take it up additionally - therefore I simply added it to the building savings amount - it fits approximately)

In both cases, I assumed a rate of 1700 euros (which was mentioned as a guideline in one of the first posts).

Document 1 shows an annuity loan with an interest rate of 1.39% for 15 years (which is roughly what you can expect according to the first offer. Although this is a mixed interest rate for 20 years, it fits approximately).

The remaining debt after 15 years is about 275,800 euros here.

Document 2 shows what you would have to pay to cover the interest of a building saver (at an interest rate of 1.19%).

This is about 490 euros monthly for the interest. The rest (1210 euros monthly) goes into the building savings.

After 15 years, you will have saved about 217,800 euros, which after 15 years could flow into the repayment of the 505,000 euros.

That means 505,000 - 217,800 = 287,200.

In fact, you have about 11,400 euros more in costs here for the first 15 years.

What happens after that is naturally uncertain. For the building saver, because allocation is not guaranteed, for the annuity loan because the fixed rate expires.

Just for comparison, because there were discrepancies about the actual amount of additional costs. To be honest, I even calculated with higher additional costs than the good 11,000 euros.

thank you very much, especially for calculating that again! That actually sounds pretty good. I have now decided to go with the annuity loan anyway. I think you can’t go wrong here. I find the model more manageable and ultimately also more flexible if you want to terminate or sell. The bank suggested otherwise, but from what you read, not really. Now I still have to make a quick decision for myself whether to go for 15 years at a mixed interest rate of 1.26% or 20 years at 1.46%. Then I would be secured for 20 years. Both options are in combination with L-Bank without special repayments. I would have to save the money separately in parallel. But basically, that shouldn’t be a problem.

Is the combination with the building savings contract through the Commerzbank and Wüstenrot? We had such an offer and it was better including the closing fees than the annuity loan, since in total there was less expense (interest and closing costs), but interest/installment security until the end of the term and not after 20 years end. The comparison refers to offers (building savings and annuity loan) directly from the Commerzbank. However, we still signed an annuity loan that was offered to us through an intermediary and was 0.13% below the direct offer from Commerzbank. In total, that was then also cheaper than the building savings contract ;)

thank you very much, especially for calculating it again! That actually sounds pretty good. I have now decided on the annuity loan anyway. I think you can’t go wrong here. I find the model more manageable and ultimately also more flexible if you want to terminate or sell. Although the bank sounded different, from what you read probably not. Now I still have to make a short-term decision for myself whether to do 15 years at mixed interest 1.26% or 20 years at 1.46%. Then I would be secured for 20 years. Both are in combination with L-Bank without special repayments. Here I would have to save the money separately in parallel. But basically, that should not be a problem.

You’re very welcome! As I said – I consider the decision for the annuity loan to be completely correct. Whether 15 or 20 years is of course a personal preference. If you are rather risk-affine, I would choose the 20 years. In case 1 (20 years) you still have about 280,000 euros loan outstanding after 15 years. In case 2 (15 years) you still have about 267,000 euros loan outstanding after 15 years. So that makes about 13,000 euros interest savings over 15 years. That’s a lot of money, but 267,000 euros still outstanding after 15 years is still quite a bit. You are surely aware that you can terminate after 10 years and enter into a new contract, right?

Is the combo with the home savings contract through Commerzbank and Wüstenrot?

No, that's Sparkasse with LBS. At first glance, everything sounds great. But I've read so many negative things about it that I don't really believe in it.

Look at the contract / offer. The costs are written in black and white (including the hidden ones, you just have to look ;)). That is the only thing that ultimately matters.