Financing with or without KFW124

Hello, following key data:

[*]Married, she is a student in teacher training, I am an engineer for 3.5 years, 27 and 30 years old.
[*]Income: Me 3580€ net * 13.3 salaries = approx. 3900€ net
[*]Equity approx. 130,000 + approx. 90,000 which will be added by parents as a special repayment
[*]Loan is only in my name
[*]Purchase price incl. ancillary costs approx. 507,900
[*]Loan approx. 380,000 (loan-to-value ratio is 79.9%)

I received an offer with the following key data:

[*]Term 20 years
[*]Installment 1100€
[*]Interest rate 1.21% without KFW 124
[*]Bank: Allianz

Now there is the possibility to equip the whole thing with the KFW 124 funding program (100,000 at 0.77% interest for 10 years), but I initially didn't want that because after the fixed interest period a new interest rate will be set by KFW and that on a remaining debt of approx. 65,000. I am afraid you are at their mercy and they want an interest rate of 4%, so the initially low interest rate of 0.77 wouldn't have done any good.

How does the follow-up financing with KFW work? I would definitely set the contract term to 25 years, so after 10 years a new interest rate is offered by KFW, am I correct? I could also accept the Allianz offer and have a secure interest rate of 1.21 without hidden costs.

Correct, after the fixed interest period ends, you will generally receive an extension offer from the KfW at "market-standard" conditions without the promotional advantage. However, these conditions are usually not the most favorable. You then have the option to refinance with another institution. No one can say with certainty whether the interest rate will be well above 3% in 10 years. Therefore, you will probably have to decide on one option.

You get a market-standard offer. Of course, you can also change the bank, but it will be difficult to find one that goes into the subordinate rank in the land register and is cheaper. You can also terminate the KfW and main loan early and combine them. This only makes sense if the interest rates are attractive. Why are you taking out the loan alone? Your wife will not become an owner?!

I will become the owner, correct. She is secured through the equalization of accrued gains (no separation of property). She said she is not paying anything in at the moment, so it would be stupid if it were also in her name. That will be changed later or we will make a contract. But as mentioned, the equalization of accrued gains covers most of it.

I will become the owner, that's correct. She is secured through the equalization of accrued gains (no separation of property). She said that currently she does not contribute anything, so it would be silly if it were also in her name. This will be changed later or we will make a contract. But as mentioned, the equalization of accrued gains covers most of it.

Aha, if the loan and house are in your name, there is no equalization, only on the theoretical increase in value of the property.

Debt is also an asset. Repayment is credited 50/50. That was my last status.