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

My opinion: Anyone who currently does not choose maximum interest rate security for the minimal extra cost is stupid or wealthy. I just can't understand it any other way.

Not everyone has to understand everything. I am only moderately stupid, and not wealthy, but at 60 it will probably look different.

How much does your Volltiger cost you in euros?

I pay 2.25% effective. ( 30 Jahre ) With a shorter fixed interest period, the conditions were of course significantly better.

How much does your full amortization mortgage cost you in euros?

I pay 2.25% effective.
(30 years)

I don’t know how much loan was taken out, but with a hypothetical 300k, that’s 30k€ more paid to the bank over 30 years,
with a 20-year fixed rate = 1.7% you could have used these 30k€ for special repayments. Also, the remaining debt would have been lower due to higher repayments and a lower interest rate, thus perhaps even outside the "danger zone".

I would never finance fully. Because whether I now definitely give the bank 30k€ extra, or whether I at least try it with a 15-20 year fixed interest period, makes a big difference to me.
Of course, I finance in such a way that if the interest rate is 5% in 20 years, the remaining debt is "low" enough that I can easily manage it.
After all, I could then repay 0.6% more for 20 years than compared to a 30-year full amortization.

Regards

When dealing with interest rate fears at 5% future interest, it is forgotten that inflation will also be different. The 5% construction interest rate will not suddenly be there for renewal in 15 years.
If it is assumed that the salary rises in line with inflation, then with a constant loan installment over 15 years there should be enough potential for special repayments. It is important, however, to actually use them.

We decided in 2013 on a 15-year fixed interest period + 10 years with [KFW] because we wanted to work a lot with special repayments. In retrospect, 5 or 10 years would have been better. However, no one could have foreseen the further falling interest rates.
For us, therefore, the right decision.

Otherwise, I also see it as dependent on many factors and not to be generalized

- future income expectations
- child planning
- ratio of installment to total income
- etc.

I also think it depends on the individual life situation.

We calculated it so that we prefer to repay less regularly but keep the option open to reduce the remaining amount at the end of the fixed interest period through special repayments. If we consistently use the special repayment every year, we would even be finished before the end of the term. Should unforeseeable (or also medium-term foreseeable) costs arise, part of what we have saved for the annual special repayment can be used for that. (Our cars will probably need to be replaced after the construction, for example, and the monthly rate still leaves us enough room for maneuver). Flexibility was important to us. And we are disciplined enough to consistently set aside every month what would normally go into higher repayment. But, for example, we don’t need to adjust the repayment rate if I switch to part-time work or retire. That is something that is planned (I am 51 and severely disabled, so I will retire at the latest by 65; with a 20-year fixed interest period, we won’t be through that yet). We arranged it so that the normal monthly burden is easily manageable for us, with the goal of making the most of the 5% special repayment each year. And if it simply isn’t possible, then it isn’t.

Even without ever making a special repayment over the 20 years, we are left with a calculable remaining amount, or we can possibly use other financial assets for it (I still have a few emergency savings).

And I think everyone should consider this: what can I comfortably afford every month? What changes might come, meaning will I possibly have more or less income than currently? What kind of person am I? Do I have the discipline to set something aside for special repayments, or does the money slip through my fingers too easily and I would rather pay it fixed every month before spending it on something else? Can I take the risk that I might have to conclude the follow-up financing at a significantly higher interest rate? Depending on the answers, I tailor my financing. Of course, whoever opts for a longer fixed interest period avoids that risk and that costs money. But on the other hand, I also find it a bit shortsighted to only think about what costs I save if I, for example, decide on a shorter fixed interest period. There are enough houses here where the owners financed only for 10 years and then at the last minute, and the 10 years were over sooner than planned, and then you are left with a considerable remaining amount. Our friends searched for a house to buy for a long time and heard from more than one agent: wait another 3-6 years, then the returns will come; houses where the 10-year fixed interest period has expired and the owners can no longer finance them because interest rates have risen and they were already financed on the tightest margin.

One small detail:
10 years are effectively only 9. The first year of the fixed interest period is used for construction before the repayment begins. The remaining debt calculation on financing offers is therefore usually incorrect.