Financing offer with special repayment from my real estate agent

But you cannot calculate the progression as in your statement. Keep the payments constant, then the portion of your installment that goes toward repayment increases each year. The €8796 is only the repayment in the first year. In the second year, you will repay about €8920, and so on. Your outstanding balance is therefore significantly lower than in your calculation.

I will take a closer look at the full repayment in 20 years on the calculator. Thanks for the train of thought. Basically, I wouldn't be doing anything wrong with the [Bausparvertrag] option either, would I?

Best regards

You can’t calculate the progression the way you set it up. Keep the payments constant, and then the portion of your installment used for repayment increases every year. The €8796 is only the repayment in the first year. In the second year, you repay about €8920, and so on. Therefore, your remaining debt is significantly lower than in your calculation.

True, sorry

The interest rate of the building society saver is simply bad. Better to look for 20-25 year annuity loans.

The following variants we have. I will continue with this variant unless someone advises me against the building savings contract for some reason.

1. Offer Credit + Building Savings

Effective annual interest rate	1.07
Rate	693
Fixed interest period	15
Remaining debt at the end of the fixed interest period	159,929.81
Interest paid until repayment of the loan	33,348.60

The remaining debt at the bank will be completely paid off by the loan of the building society, and in parallel I am saving the building savings contract with €240.

Total rate credit and building savings the first 15 years	€933
Building savings loan amount	€108,903.64
SECURE Effective annual interest rate until end of term	2.647
Rate at repayment of the loan at the first bank	829.40
Fixed interest period as long as the loan is paid off	12 years
Remaining debt at the end of the fixed interest period	0
Interest paid until end of term	19,822.42
BOTH LOANS interest amount 33,348.60 + 19,822.42	€53,171.02

So I have a small rate... the entire amount fully financed... I can reject the building savings loan if interest rates stay very low.

And pay little interest. Only the loans with the fixed interest period of 27 years and 25 years would be comparable in terms of security, but I pay significantly more interest there.


2. Offer

Effective annual interest rate	1.60%
Rate	959.70
Fixed interest period	27 years
Remaining debt at the end of the fixed interest period	0 €
Term	27 years
Total interest and fees	60,833.42

3. Offer with the uncertainty whether the interest rate remains the same after 25 years.

Effective annual interest rate	1.54%
Rate	947.10
Fixed interest period	25 years
Remaining debt at the end of the fixed interest period	22,552.95 €
Term if THE INTEREST RATE REMAINS	27 years
Total interest and fees if THE INTEREST RATE REMAINS	55,966.06

4. The offer with low interest looks good but that is more than €250 more monthly than with the building savings variant and then there are the living expenses on top—€1209 I don’t necessarily want to pay. Even if it means I pay more interest in the end.

Effective annual interest rate	1.43%
Rate	€1209
Fixed interest period	20 years
Remaining debt at the end of the fixed interest period	0
Term	20 years
Total interest and fees	37,562.82

5. Offer with the uncertainty whether the interest rate remains the same after 20 years.

Effective annual interest rate	1.43%
Rate	924
Fixed interest period	20 years
Remaining debt at the end of the fixed interest period	77,626.45
Term if THE INTEREST RATE REMAINS	27 years
Total interest and fees if THE INTEREST RATE REMAINS	52,494.93

Option 5) would be my favorite. 2 years at 2% inflation/salary increase and the 78 TE are worth less than 40 TE nowadays. And if you use [Sondertilgungen], it would be even less - in 20 years, let's say 10 times 3 TE [Sondertilgung], then we are talking about an actual roughly 25 TE in today's value at the end of the fixed interest rate period in 20 years. I find that absolutely manageable!