Home Financing - Decision Aid

The second one is clearly cheaper and your repayment is higher. Calculate the whole thing again with a constant rate and 15 years, in my opinion that is more worthwhile.

How can you be so sure?
If I only get 3-4% interest on the remaining 33,185 of the KFW after 10 years due to an interest rate increase, I would actually be better off with 20 years at an effective 2.26% without KFW as in offer 1.

Alternatively, I also have the offer with 15 years:

KfW 50,000
10 years 1.40% (eff. 1.44%)
3.51% repayment
Remaining after 10 years 33,185 €

Loan 135,000
15 years 1.96% (eff. 2.00%)
3.75% repayment
Remaining after 15 years 46,802€

Both rates together:
monthly 1st year 700.71 €
from 2nd year 846.89 €

Somehow the interest rate seems quite high to me. Is this a 130% financing? Otherwise, a 3.75% repayment rate is already quite decent.

What do you think is more recommendable?

Hello, you can still post 17.5 variants here and not come to a decision. You have to know what you want (you have already set the rate at 845 euros) and then consider for yourself which term and security you would prefer. Do I need a 20-year term to then only have 18,000 euros of debt afterwards, or rather a 15-year term after which I still have 47,000 euros of debt? Maybe interest rates are still at an absolute low point after 15 years and you get the follow-up financing for 0.45% and are done within a few years, while after 20 years they are back at a high of 12.7% and you have to pay for just as long for less money. But maybe it’s exactly the other way around and the 20-year fixed interest rate was worth it? Sorry, but unfortunately no one here has a crystal ball for you :(

And with KFW, you can vary the repayment-free period between 1 and 5 years, but KFW does not allow it without any period at all.

Somehow the interest rate seems quite high to me. Is this a 130% financing? Otherwise, a 3.75% repayment rate is already quite decent.

The entire equity (40,000) will flow into the renovation, as many things around will be renewed.
Therefore, the loan amount is for the purchase price + property transfer tax.
This results in a 107% financing.

Somehow the interest rate seems quite high to me. Is this a 130% financing? Otherwise, 3.75% repayment is already quite decent.

The entire equity (40 thousand) will flow into the renovation, as many things around will be renewed.
Therefore loan amount for purchase price + property transfer tax.
This results in a 107% financing.

The KfW-124 loan is calculated once for a term of 30 years (offer 1) and once for 35 years (offer 2).
The term according to the KfW homepage is UP TO 35 years.

Edit: According to the KfW repayment calculator, this is possible as described above. Then the numbers from the original poster or the offer are also correct. Whether this makes sense, I still doubt.

Does it not not matter in this case whether 30 or 35 years were calculated?
After all, everything is paid off in under 25 years, and the fixed interest rate of 1.40% is only guaranteed for 10 years anyway.