Follow-up financing - Request for advice

Hello,

I am asking for tips and advice regarding the following situation:

Ongoing construction financing €200,000. End of fixed interest period 2027 (15 years fixed interest period - 3.5%).
Outstanding debt in 2027 approx. €100,000.

I am now thinking about what I can sensibly save during this time until the end of the fixed interest period. I can definitely put aside €200 monthly in addition. The most sensible thing would of course be to increase the monthly installment. Unfortunately, I did not pay attention to agreeing on variable repayment rates when signing the contract. Partial repayments are also not possible.
I know, how can one be so stupid^^.
But I have to make the best of it now.

For those who don’t find that stupidity enough, I also have a building savings contract over €100,000 lying around.
I’ve already had to pay a lot in learning fees. But maybe it can still be used sensibly, at least partially.

My consideration:
Divide the building savings amount into e.g. €50,000. Save €200 monthly. Balance 2017 approx. €32,000 and use it to repay the main loan, so that I at least have €50,000 interest security via the building savings contract. Interest rate is 3.56%. Credit interest rate is 1%.

Alternatively €200 into a daily money account ??!?

I will never sign anything again that charges a processing fee. Never again... :)

Thanks for your help.

Best regards
Koalaluzu

What are the conditions for the building savings contract?

The idea of saving into it is not wrong at first, especially if it is already a few days old. (Better interest rates than currently, no ongoing fee)

For now, stay away from splitting it, because that also costs money. And later it can still be split relatively quickly if you think about it early.

Until 2027 is still a long way off. Who knows how everything will develop and you can/want to save more.

What is the minimum sum for allocation? Normally about 40%. You probably won't make that. But if you even manage 40,000 EUR, you have complete interest rate security at building savings contract conditions for the remaining 60,000 EUR credit then.

That is also the reason to only tackle splitting when it is foreseeable how much money will come together.

You just have to note that on your planner and check it regularly.

I would also rather save into the building savings contract. Moreover, one tends to fall back on the [Tagesgeldkonto].

Ongoing construction financing €200,000. End of fixed interest period 2027 (15 years fixed interest - 3.5%).
Remaining debt 2027 approx. €100,000.

My consideration:
Divide the building savings amount into, for example, €50,000. Monthly save €200. Balance 2017 approx. €32,000 and thus repay the main loan, so that I have at least €50,000 interest security via the building savings contract. Interest rate is 3.56%. Credit interest rate is 1%.

Sorry - but I have a problem understanding this.
The fixed interest period of your loan is 15 years until 2027. At the earliest, you can exit the fixed interest period - unless otherwise stated in the contract - after 10 years (special termination right). You apparently took out the loan in 2012.

How do you come to the conclusion that in 2017 you could repay part of your loan using the building savings contract? Or did you make a typo and actually meant 2027?

Sorry - but I have a problem understanding this. The fixed interest period of your loan is 15 years until 2027. At the earliest, you can get out of the fixed interest period – unless otherwise stated in the contract – after 10 years (special right of termination). You must have taken out the loan in 2012. How do you come to the conclusion that you can repay part of your loan in 2017 using the building savings contract? Or did you make a typo and meant 2027?

Yes, I made a typo. It should be 2027.

I would also cancel after 10 years. Unless the interest rate unexpectedly increased. I find the fixed interest period much too long. We chose a 5-year fixed interest period because after 5 years, firstly, a reassessment takes place with then lower loan-to-value ratio, which should have a significant impact on the interest rate, secondly, we want to switch to a Wohnriesterdarlehen, which brings enormous tax savings (post-taxation is irrelevant, as there is no huge pension and therefore no significant tax burden), and thirdly, the phase with the highest interest rate is kept as short as possible (the highest loan-to-value ratio and the highest remaining debt are, after all, at the beginning of the financing, and if you repay properly there, it affects the total repayment amount by tens of thousands of euros). Complemented by maximum special repayments, the first one we just made after less than 2 years, the next one could take place early next year, but I am still considering whether I might also get an electric vehicle with it.