High interest rates with fixed interest, alternative flex loans?

You mean that we can't afford the installment?

You don't even know which installment.
You can do that if you are financing a manageable amount or if there is still a lot of leeway in the installment.
But if you want to finance such a high volume and the installment is already quite high, then it's basically Russian roulette...

I have attached the long-term Euribor chart for you, where you can clearly see that it has not been above 6% in the last 20 years.

You are making the mistake of believing that everything you have seen during the observation period is all that is possible. In this case, we do not even have to look into the future, a look into the past is sufficient. For example, the flood measurement series since the 1950s (often euphemistically described as "since the beginning of records") says little about extreme events. Most of the last 20 years were also quite interest-rate friendly. Extend the chart by a few more decades, and it looks different. Currently, we have a situation that could perhaps develop like the 70s. Back then, interest rates were double-digit at their peak. The problem is: if interest rates should rise quickly now (maybe we have learned from the 70s), then with high debt you have high interest. Take something with fixed interest, at least until the larger part is paid off. If that does not work out, adjust the house to the budget or bring in more equity. PS: A book recommendation for this is actually everything by Nassim Taleb

Somehow I am skeptical, but maybe only because I am not familiar with variable loans. Help me quickly understand the structure: The 3-month Euribor is currently at 1.1%. How should the margin of 2.75% be understood? Are these additive percentage points? That would mean a total of 3.8% with a strong upward tendency and right at your limit of 4%.

I feel the same, the skepticism is great. I do not understand the margin of 2.75% as additive percent, but I could be wrong.

You don’t even know which rate. That can be done if you finance a manageable amount or still have a lot of leeway in the rate. But if you want to finance such a high volume and the rate is already quite high, then it’s basically Russian roulette...

Of course I don’t know the rate. That’s why I also wrote that a rate of €2800 would be affordable. Anything above that I have to cover from my equity and I know that doesn’t work well forever.

You are making the mistake here of believing that everything you have seen during the observation period is all that is possible. In this case, we don’t even have to look into the future; a look into the past is enough. For example, regarding floods, the measurement series since the 1950s (often euphemistically described as “since the beginning of records”) says little about extreme events. Most of the last 20 years were also quite interest-rate friendly. Extend the chart by a few more decades and it looks different. Currently, we have a situation that might develop like in the 70s. Back then interest rates were double-digit at their peak. The problem is: if interest rates should rise quickly now (perhaps one has learned from the 70s), then with high debt you have high interest. Take something with a fixed interest rate, at least until the larger part is paid off. If that doesn’t work, adjust the house to the budget or bring in more equity. PS: A book tip for that is basically everything by Nassim Taleb

You are absolutely right, I cannot foresee everything. Unfortunately, the chart does not go beyond 1999. I roughly know the situation in the 70s; in case of the variable loan, it would lead to a financial fiasco for me. :(

I also feel that the skepticism is great. I do not understand the margin of 2.75% as additive percent, but I could be wrong.

How, when, and at what amount must this margin be paid otherwise? How do you understand it? I consider it highly unlikely that the bank simply passes on the Euribor without a surcharge.

The information provided does not match for me. Euribor + 2.75% does not result in an effective interest rate of 0.61%.

The 2nd page is a fixed interest rate with interest rate lock?!?

I can't understand it …

?

For me, the posted information does not add up. Euribor + 2.75% does not result in an effective interest rate of 0.61%.

The 2nd page is a fixed interest rate with an interest lock-in?!?

I can't understand …

?

I also don't know why there is an interest lock-in entered there.