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

I don't bet.

You have paid for the security of a full repayer. You bet that a shorter fixed interest period would ultimately be more expensive for you because your assumption was that interest rates would rise above a certain level.

You have paid for the security of a full repayment loan. You have bet that a shorter fixed interest period would ultimately be more expensive for you because your assumption was that interest rates would rise above a certain level.

No. I wanted to know today what this fun costs me. We don’t want any surprises, and I also don’t want to regularly listen to Draghi’s cryptic sentences. Honestly, I don’t care if it ultimately costs more (so if the interest rate remains like this in the long term).

Here at work, many people have been quite restless in recent months because their financing is about to expire (in 2-3 years), and about when they should enter into a forward contract (every month saves money; on the other hand, the ECB can always raise the base interest rate).

I know how we, on a monthly basis while looking at properties, kept checking how the interest rate developed (we missed the interest rate low by half a year).

That also means that home builders with relatively limited financial means are supposed to choose the most expensive financing option.

Yes, of course it means that!

It's somewhat amusing to follow this here... most people report what they believe to be right from their own perspective. And in most cases, I hope, that will also be the case. But the perspective is always different.

Again... if, as of today, I take on a rate of 20% of the household net income, maybe have finished planning children and the partner is already working again, meaning in terms of life phases rather more income than less is expected in the future... well then I can easily say I'll just do 10 years because I prepay 5% extra every year and if after 10 years a considerable residual debt remains, I can still afford it because the follow-up rate + higher interest might still easily fit into the net income. Then it’s just a personal decision whether one believes that the interest rate after the fixed rate period is significantly higher or not. You can also calculate that yourself if you understand a bit about it and use the financing calculators on the internet. For every financing constellation there is a threshold interest rate above which the shorter term is cheaper. There are no general statements here either because it depends on many factors (amount of repayment, terms, etc.) For many, that is around 4-5%.

But if my rate is 35% or 40% of my net income. I still have child planning ahead of me... then it’s not a question of "which bet do I take," then anything other than a financing with as little risk as possible is nothing but reckless. What if, after 10 years in this case, the interest rate actually increased by a few percent and coincides exactly with the time when one partner is at home because of the children? Then the house has to be sold...

In the end, it is also a question of attitude and personality type. Even if you can afford it, that doesn’t necessarily mean you want to do it. Some simply prefer not to worry and to know what’s coming.

Thinking from the other side... shouldn’t every German who can "afford" it own stocks in the long term... but the share of Germans owning stocks is not very high...

Honestly, I don't care if it ends up costing more in the end (that is, if the interest rate remains like this in the long term).

That is then a statement that sounds "typically German" to me, which is also completely fine. However, it remains that everyone should be aware of the costs that are really associated with it.

Among other things, we have a 20-year full amortization loan included. The interest discount compared to a 20-year loan with a calculated term of over 24 years was already considerable.

Honest question: What would a loan with a calculated term of 20 years and an interest rate fixed for 15 years look like?

Who says that the loan with the shortest term is also the loan with the lowest interest rate

Not me, I only assumed/asked that. I still maintain that I would prefer to repay the loan with the highest interest rate first.

I never understand this discussion. Everyone has to know for themselves what the interest rate security is worth to them. In my opinion: Anyone who currently does not choose the maximum interest rate security for the minimal extra charge is either stupid or wealthy. I can't understand it any other way. If in 10 years we have a 5 before the decimal point, my payment to the bank will double. Ten years ago we had a 5 before the decimal point if I'm not mistaken. Good night