Financing offer with 0.95% for €710,000

That brings us back to the discussion of whether making special repayments makes sense at that interest rate with an investment horizon of over 10 years. But that is another topic.

I think the offer is great. However, I would still inquire again at the Commerzbank, they were always top for me as well. They did noticeably increase on Tuesday though.

I would also feel more comfortable with a longer fixed interest period. However, the Sparkasse does not offer this.
Which bank are you with?

Interhyp and Dr. Klein independently had Allianz and DKB as the cheapest providers in the 25+ years fixed interest period area. This matches what we have heard elsewhere. However, this should by no means be considered advertising. The KSK/Volksbanken always had a maximum fixed interest period of 20 years. Please make sure when comparing offers that you stay below a loan-to-value limit (=portion of equity on the mostly artificially reduced purchase price), e.g. 90%, 80%, or 70%, etc. This can make a difference down to a decimal place.

Small mistake on my part: Loan-to-value limit (= ratio of loan amount to the property value usually artificially reduced by the bank in a cheeky way) remains, e.g. 90%, 80% or 70%, etc. It can be worthwhile to borrow money somewhere (which then requires a lower loan amount) to reach a lower value. But you have to calculate it precisely. Of course, you should have the bank tell you the loan-to-values.

Why is it better to have a high monthly repayment? If he is planning higher repayments anyway through special repayments and the income is there? It comes out the same, doesn't it? But it gives you more peaceful nights if one year doesn't go so well...

I see it the same way as apokolok. You can do that at 25, but not when you still have 25 years until retirement. The OP is already 41, after all. Considering the high loan amount, at least 3% repayment + the 10k special repayment p.a. should be on the table. But well, if someone absolutely wants to inquire about a follow-up loan with 400-500k residual debt at a bank at 56, I wish them good luck. Crazy what banks are approving again right now, but that's just my personal opinion.

I see it the same way as apokolok. You can do that at 25, but not when you still have 25 years until retirement. After all, the OP is already 41. Considering the high loan amount, at least 3% repayment + the 10k special repayment p.a. should be on the table. But well, whoever absolutely wants to request a follow-up financing with a remaining debt of 400-500k from a bank at 56, I already wish them good luck.

Dear Maschi33,

you are also welcome to speak to me directly! According to our repayment plan, there will still be a remaining debt of €337,000 after 15 years. Sure, still quite high, but why should I give up monthly flexibility if I can make €35k special repayments every year? And how disciplined one is in doing so, I suppose everyone can best assess that for themselves!

Repayment 2% (plus fixed €10,000 special repayment/year)

If the special repayment is fixed, you end up with €320k outstanding debt after 15 years and at 56 years old "just before retirement" (ok, at least within sight). :D

We don’t know the other expenses that occur monthly. Could you easily afford more? You have to pay it anyway and the later, the more (expensive).

Unfortunately, my crystal ball is very cloudy regarding the interest rate in 2037 for the follow-up financing.

15 years go by quickly.
I would probably fix it for 25 years. (Full repayment)