Vega82
2014-11-06 16:50:15
- #1
No, as described, the repayment always includes KFW. So an 800 euro installment with 170 € for KfW and the rest for the "main loan":
I would set KfW to 10 years ... more does not make sense because the fixed interest period only runs for 10 years anyway. After that, with the 10-year loan, it has the advantage that I can include the not fully repaid KfW in the follow-up financing.
If the term is longer than 10 years, after the KfW loan expires, I would have to do a refinancing/follow-up financing only for the KfW and then again 5 years later for the "main loan". That doesn’t look good and the conditions would certainly be worse.
If I calculate the 15-year loan and the 10-year loan both with an 840 installment to make it comparable, then after 10 years I have already repaid 66k at the shorter term and 1.6%, while with the 15-year loan I have only repaid 52k. Roughly calculated .... I just repay 0.65% more monthly for 10 years, which already makes a big difference.
BTW: You can currently still get 1.6% or more on daily money accounts, if you’re lucky. The thing with saving up instead of special repayment was once explained to me by some economist, I don’t know what’s behind it ... I can ask the banker about it again.
I understand that the financing will run for longer than 30 years ... but there will be at least 1500€ per year available for special repayments. But since we are also planning to have children and I first want to get used to the monthly burdens, I chose this rate because it’s very safe for us.
I would set KfW to 10 years ... more does not make sense because the fixed interest period only runs for 10 years anyway. After that, with the 10-year loan, it has the advantage that I can include the not fully repaid KfW in the follow-up financing.
If the term is longer than 10 years, after the KfW loan expires, I would have to do a refinancing/follow-up financing only for the KfW and then again 5 years later for the "main loan". That doesn’t look good and the conditions would certainly be worse.
If I calculate the 15-year loan and the 10-year loan both with an 840 installment to make it comparable, then after 10 years I have already repaid 66k at the shorter term and 1.6%, while with the 15-year loan I have only repaid 52k. Roughly calculated .... I just repay 0.65% more monthly for 10 years, which already makes a big difference.
BTW: You can currently still get 1.6% or more on daily money accounts, if you’re lucky. The thing with saving up instead of special repayment was once explained to me by some economist, I don’t know what’s behind it ... I can ask the banker about it again.
I understand that the financing will run for longer than 30 years ... but there will be at least 1500€ per year available for special repayments. But since we are also planning to have children and I first want to get used to the monthly burdens, I chose this rate because it’s very safe for us.