For how many years of fixed interest period would you currently finance?

The topic of fixed interest periods depends on many factors. For my part, I primarily see the loan amount in combination with the loan-to-value ratio as the factor that should decide between a long or short fixed interest period. After that comes for me the individual risk tolerance and the bet on lower/rising interest rates. Then the amount of repayment. Last but not least is the question, can I afford the installment together with the fixed interest period and the desired repayment.

Personally, I took 3 annuity loans. A large amount for 20 years with 5% special repayment. A medium amount with 10 years and unlimited special repayment and a small amount with 15 years and 5% special repayment. Each loan is planned to be paid off by the end of the fixed interest period.

Priority 1 is of course the 10-year fixed interest period, as we pay off this loan the fastest and thus reduce the overall costs.

The nice thing about this construct is that after each fixed interest period ends the loan burden decreases!!!

In April we completed 20 years (330k loan, remaining debt approx. 65k). It was hardly more expensive than 15 years and we found it comfortable to completely eliminate the interest rate risk (remaining debt is to be covered by a special repayment) - even though it would have been manageable

It is individual. How high is the loan, can you easily manage it and possibly make extra repayments, how high will the remaining debt be and accordingly a changed interest rate could destabilize the calculation.

Just briefly checked on biallo for a loan of €400,000 at 80% loan-to-value based on the example of HVB, just to show the differences

10Y 1.26%
15Y 1.65%
20Y 1.89%

If you only look at this, 15Y is IMO out.
But for the individual case, it can also fit well, e.g. if you repay so strongly that the loan would mathematically be paid off after 18 years and the remaining debt after 15 years is therefore a small amount. Then it doesn't matter whether the follow-up financing costs 2% or 6%.
Another example, you finance very high, possibly also with a high loan-to-value ratio and repay little, then 10Y would be quite foolish, because a high remaining debt would remain and even small changes in interest rates could become unbearable.

How high is a healthy remaining debt? Sure, it depends on the individual case, but there must be a general tendency? 50k - 60k?

I fully agree with . Especially the connection with the framework conditions. The only difference maybe is that I don't find it so tragic if not everyone is a full amortizer. A blanket statement regarding the residual debt is nonsense as well. One knows that they will eventually receive a life insurance payout, one is 40 at the start of financing, the other 25. One has completed family planning, the other has not. I also consider a blanket statement regarding the fixed interest period to be wrong. It only makes sense when it fits the concept. For one, a component with a 20-year full amortizer might be the right choice. For others, a combination of perhaps a full amortizer and an annuity loan. Depending on the situation, different amortizations and fixed interest periods can make sense. The only thing I would say is, the tighter the financing and the worse the loan-to-value ratio, the longer the fixed interest period should be. Tight and short is a very bad combination that can go seriously wrong.

Amount: 200k€ Interest rate: 2.05% Year: 2015 Duration: 10 years Everything over 10 years was simply too expensive for me and I like risk