Fixed interest rate for the entire term or only 10 years?

Hello everyone,

I am a bit confused and would like to hear other opinions.

We have three financing offers.

1. €500,000 - 50% fixed for 10 years at 0.85% as an annuity loan, residual debt €160,000 interest costs of €21,600, 50% as a deferred repayment loan, full repayment loan 30 years, total costs over the term of €44,400.

2. €480,000 as an annuity loan secured by a building savings contract that repays the loan after 20 years. Interest rate security for the full 30 years. Total costs of €133,000.

When I compare this, I arrive at a difference of €70,000. The interest rate on the residual debt of €160,000 would have to rise to about 4.5% for me to reach the same total costs. I cannot imagine that it will be that high in 10 years.

Am I thinking correctly, or is the 30-year offer actually quite good? I look forward to any contributions. The topic is being hotly debated in the whole family.

I am currently at a loss. For 1. the second loan part 30 years. What are the conditions?

How do the installments compare?

Why are 20k less enough for you with the second offer?

Your calculation is not correct, but security just costs money.
In general, I always find it interesting how one can borrow 500k without understanding such basic interest calculations, and that in the whole family?

We pay the same amount for both offers. Until 2027 €1300 and from 2028 €1750. From then on, we have more available.

I’m currently confused. For 1. the second loan part 30 years. What are the conditions?

How do the installments compare?

The conditions are hard to describe, that’s why I gave the total costs.

Why are 20k less enough for you in the second offer?

Your calculation isn’t correct, but security costs money.
In general, I always find it interesting how you can borrow 500k without understanding such basic interest calculation and that in the whole family?

With 20k less, we fall into the 80% run-off and get better conditions. For that, child construction grant and home ownership subsidy are not taken into account. So we come back to the same. €500,000 is the worst case. We will probably only need €480,000. Why is my calculation wrong?

What's so difficult about that? A loan has terms. Write them down here. Without even starting to calculate, I claim you have a calculation and/or reasoning error. Comparing two different loan amounts alone is nonsense.

What is difficult about that? A loan has conditions. Write them down here. Without even starting to calculate, I claim you have a calculation and/or thinking error. Comparing two different loan amounts alone is nonsense.

I would like to compare like with like, but I was offered the 480,000€ because it is cheaper for me. However, the subsidy is not considered for that, and I am back to 500,000€. Unfortunately, I cannot provide conditions because both offers consist of several different components that receive different interest rates after certain terms. Above all, the offered home savings contracts are too complicated. I am mainly interested in whether it makes sense to spend 70,000€ more from the outset. I just recalculated it. 160,000€ fully repaid over 20 years results in total costs of 71,000€, which corresponds to an interest rate of 4.0%.