First financing offer

Uwe,
at what point in time did you finalize that?
Maybe you have even better parameters, or I missed something, but 1.2% over 10 years is just amazing!

Musketier,
I also agree that special repayments must flow into the longer-term, less favorable interest loan when splitting.

I roughly calculated and compared the status after 5 years for 5-year and 10-year fixed terms. I didn’t calculate it on a pro-rata basis during the year, but it’s enough as a rough orientation. With a 5-year fixed term, €320,000 would still have €265,000 outstanding; with a 10-year fixed term at the same time, €273,000. This difference of €8,000 means that much more has already been repaid, and the interest for the next 5 years would have to be significantly above the 1.87% of the 10-year fixed term for the calculation to turn negative. Right? What happens after a total of 10 years, of course, nobody knows today..

Best regards

Maybe you have even better parameters, or I missed something, but 1.2% over 10 years is insane!

That was the end of April, so the absolute low. We both used KfW at 0.75% and 1.2%, and we got our 30-year at 1.84%. Due to the previous property, the overall financing has become quite a complex construct.

The conditions mentioned in #1 are absolutely market-appropriate for classic annuity loans as of today. There won’t be much room for negotiation, possibly 10 basis points.

And as for the fixed interest periods... risk is cheap and security must be paid for, but that is always the case.

Thank you for the assessment. Market-appropriate would mean that the rates elsewhere should also be around plus or minus a tenth, with 3/10 I would already consider the current level to be a non-market-appropriate deviation.

I definitely do not want to start a discussion about this here, but personally, I expect the low-interest phase to continue in the coming years. Under this assumption, we are considering a 5-year commitment, heavy repayment while the debt is still large, in order to possibly fix it long-term afterward. The next crisis is certain to come...

Apart from annuity loans, we hardly know our way around. We are, of course, still open to tips. If only we had a crystal ball.

If I had a crystal ball, I wouldn’t be answering questions here and would be sitting with a cocktail and fruit in Hawaii.

0.3 less only works if someone has made a massive miscalculation.

I can understand your decision, but in my professional role, I have to at least point out the associated risk. Whether the bet will pay off, you will only see over time.

And if necessary, you can still intervene later... be it forward loans or building savings contracts, but then you should be able to react quickly to limit the risk. Whether one can do that so quickly privately... I don’t know.

You just have to be aware of the danger and also be able to bear the consequences.

The conditions mentioned in #1 are absolutely market-appropriate for classic annuity loans as of today. There won't be much room for negotiation, possibly 10 points.

Since we are now three months further and still haven't closed anything, but will probably do so by the end of the month, I wanted to ask how the development has been over the last three months, or if the figures from mid-October are still to be considered "market-appropriate."

Best regards and thank you.