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

  • Erstellt am 2019-12-12 22:20:51

Tobibi

2019-12-13 12:29:15
  • #1
That is exactly not what is meant. You are not supposed to calculate 250,000 over 30 years and the rest somehow differently, but only one large annuity loan over the entire amount. That is often the best option.
 

nordanney

2019-12-13 12:31:44
  • #2
But I calculate an annuity loan of €480,000. Exactly what I said ==> interest rate security for 30 years, which is cheaper than your variant with repayment substitute home savings contract. When you calculate, always calculate the total amount (i.e. all components) over the entire term. Only then can you compare. One component alone does not help.
 

RotorMotor

2019-12-13 13:22:10
  • #3
So overall, I am still very "confused" about this request. Someone wants to take out half a million. He writes that he has three offers for it, but only presents two, and even those only fragmentarily. These are then very complicated, with completely different fixed interest periods and on top of that also different financing amounts. This is justified by the fact that [Baukindergeld] might come, which of course either has to be calculated in all variants or in none. Please approach such a project a bit more logically and purposefully. So, how much money do I need (including buffer, because you need that not depending on the type of financing, but depending on the construction). And then how much interest rate security do I need and want in order to sleep peacefully. Maybe also, which other features are important to me in a financing, like interest-free period, flexibility, etc. And then I look for offers that match my ideas. And if you don't understand certain products, either find out how they work or simply leave them out. Someone who sells me products that I don't understand probably wants to take advantage of me and not give me a gift.
 

Johanneslisa

2019-12-13 13:36:46
  • #4

The third offer is exactly the same as offer 1 but with worse conditions, so I spared you that. I’m writing so little because I only want to compare the two possibilities. I want to focus on what is important to me. I want to know if 10 years fixed interest period is too risky. I took the remaining debt of €160,000 and assumed that the interest rate had risen to 3%. That would mean only €150-200 more per month. That’s no problem then.

One thing still puzzles me. Is the amount of €450 enough to repay the €160,000 over 20 years? That’s where I see the problem.
 

RotorMotor

2019-12-13 13:47:48
  • #5
That depends on the interest rate development, which no one can correctly predict. And your personal situation, which you have not shared with us. Therefore, you cannot expect any meaningful answers here. I’m not sure if I understand the question. With 450€ per month, you can only repay 160k€ over 20 years if the interest rate is about -3.7%. Since that is currently unrealistic, the answer is probably: no, it’s not possible.
 

nordanney

2019-12-13 13:53:32
  • #6
160,000 / 20 / 12 = €667 repayment per month

Please, please go to an advisor and have everything explained to you. Please!!!
You are missing all the (financial) mathematical basics...
 

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