Financing with a 35-year fixed interest rate

Hypothetically more regarding the amount The fact is that parents-in-law and grandparents-in-law have paid-off houses in their assets and my wife is an only child. The inheritance is therefore hopefully still far away, but of course still in the back of my mind

Oh, partial termination is possible? As a non-banker, one is always surprised by this industry.

: The inheritance thing sounded very hypothetical, but he was basically right: without special repayment, you don’t finance.

This "industry" is called the Civil Code... The "industry" itself probably wouldn’t pick it out that way.

What do you mean by not financing without special repayment?

This "industry" is called the Civil Code... The "industry" itself probably wouldn’t pick it out like that


What do you mean by saying you can't finance without special repayments?

I just wanted to say: not everyone has become a banker. Personally, I don’t go through the terms and conditions of financial service providers and the relevant sections of the Building Code every day.

Personally, I think financing without the possibility of special repayments is nonsense. And if you’re cutting it down to the last cent, maybe you should generally keep your hands off building. But today, everyone somehow has to build, whether it’s realistic or not. And if the washing machine breaks down after just five years, people take out a consumer loan for 350 euros.

Just wanted to say: not everyone has made it to bank clerk. I personally don’t go through the terms and conditions of financial service providers and the relevant sections of the Building Code every day.

Believe me... not every bank clerk knows the special right of termination :-P

Personally, I think financing without the option of special repayments is nonsense.

I didn’t mean that you should finance completely without the option of special repayments. However, if you have two components, you don’t need the option of special repayments in both. Especially not when you have the possibility to repay after 10 years anyway.

Construction financing is not my professional field. Still, I come into contact with it a lot. And a non-representative but still very, very well-known experience among bankers is that out of 10 construction financings that were concluded, maybe 3 or 4 even make use of special repayments and at most one to the planned amount. Just think about what that means.

5% of the entire loan amount... let’s take roughly 300,000.- €. That is 15,000€ per year... over 1,000€ per month. Lucky is he who receives a bonus payment of that amount every year. In most cases, however, it is the case that in the following years one first finishes the "other" things with remaining funds (if any at all). Outdoor facilities, shading, garden shed, etc. Then suddenly the car breaks down or the stork still comes by one more time...
Those who have sustainable money left over could also have chosen a higher repayment rate and perhaps a better interest rate right away.
Special repayment options are all well and good, it works for some but for most rather less.

Therefore... it’s worth considering, for example, having two components and skipping special repayments on one of them. It brought me a 0.1% interest improvement. And if I use all special repayments on the second component... then I am more than happy in the end.

As I said, it's not that we have several hundred euros left over every month and therefore absolutely need the special repayment. It just seemed a bit silly to me that it is excluded from the outset in our offer and completely takes away the possibility to shorten the term. The special termination right would of course alleviate the "problem" a bit. By the way, we have now received two other offers from two other banks (same conditions such as loan amount and desired rate of about 1,100 EUR): 1) Fixed interest rate for 15 years -> interest 1.95%, special repayment once a year up to 5% of the loan amount possible 2) Fixed interest rate for 20 years -> interest 2.34%, special repayments within one year up to 5% possible Offer 2) somehow doesn't seem so attractive... 15 years less interest rate security than in the original post, but only 0.16% less interest. But at least special repayment...

Parents-in-law have paid-off houses in their assets and my wife is an only child.

Just want to remind that it is their retirement provision, which often needs to be made liquid in order to buy into a nursing home or to pay the monthly care costs (i.e. the surcharge).

Personally, I wouldn't want to stretch it out over 35 years.