Financing used property

With your income and your age, my suggestion is to directly conclude a full repayment loan over 10 or 15 years. The installment is then somewhat higher (e.g. 15 years = EUR 1,450 monthly / calculated very conservatively with a 3.40% nominal interest rate) but by the time you retire, you will be debt-free. Friends of ours concluded a 10-year full repayment loan (about 60% loan-to-value) for under 2% a few months ago. However, if the installment does not fit your lifestyle, the repayment will just take longer.

Hello,

thank you for the many responses. I actually forgot the repayment rate on the Landesbank loan (was 2%); I myself also did some excel calculations this afternoon and also found option 2) better because of the long fixed interest period. The issue with the remaining debt is clear to me, but I think it can be done, especially since we live in an urban area where prices should at least remain stable, I think. There is a need for renovation, but since around 15,000.- invested money will be due in 2015 and such things are supported via [kfw], it shouldn't matter at first - it's initially only about the purchase. The rate 1000.- corresponds to the current (cold) rent, that's why.

Best regards

Really, neither of the two options was actually recommended here!?

If one of the two options had to be chosen, I would personally take the first one and, if it is really feasible, increase the rate to €1,200 (at least by the amount of the difference between I and II).

With a €1,200 rate, the remaining debt amounts to ~39K € + remaining debt of the promotional loan.

Really, none of the two options were actually recommended here!?

If it had to be one of the two options, I would personally choose the first one and, if it is really feasible, increase the installment to €1,200 (at least by the amount of the difference between I and II).

With a €1,200 installment, the remaining debt is about €39K + remaining loan subsidy debt.

Hello,

as mentioned: the €1,000 is the current rent. The question (which has been raised here before) is: stay with the installment and make annual special repayments or increase the installment right away?

As said ...

Whether you repay more (rate of €1,200) now or make special repayments with the same amount actually makes no difference. With special repayments, you are more flexible throughout the year, but with a higher rate you have the security that the money is actually used for the financing and not for something else. ;)

If the €1,200 rate doesn’t bother you, you can also set the rate that high. If you are concerned that it might get tight at the end of the month, make special repayments but then also transfer the money monthly to a call money account or similar.

Interest expenses and remaining debt differ only slightly in both cases.

Interest expenses and remaining debt differ only slightly in the two cases.

Thank you, I agree. The spending discipline is definitely there (we have been doing this for the last three months with a household budget book, etc.), that should be fine.

Thanks again to everyone!