Home financing with interest loan and Riester or without Riester

Yes, I'm actually more in favor of annuity loans and seeing after 20 years what is possible for the €80,000. Of course, if the interest rates stayed the same, it would only be €51,000. But if you assume an increase in interest to 5%, which ultimately wouldn't be unrealistic (the time during which everything had to be kept down because of Corona will eventually be over), then we are at an additional 7 years with a total of €62,000, 10 years with a total of €68,000 (finished after 30 years). The BS option is at €67,000 (so similar to option 1) and you don't have the question of what the interest rate will be after 20 years. Where does the truth lie? Sonemann prefers option 2 )

Where does the truth lie? The truth is that none of those present here can realistically predict where the interest rate will be in 5, 10, 15, 20 years. Three years ago it was said: interest rates will not go any lower. Most people had already guessed at securing the interest rate for 30 years. I financed for 10 years. Within one year, interest rates dropped significantly again. It is a question of what risk one is willing to take and how secure the job including salary increase is. With regard to inflation, the remaining debt will be absolutely manageable. And even currently, massive amounts of money are being pumped into the economy, which of course boosts inflation. And inflation is the best friend of the debtors.

Yes, I’m actually more for annuity loans and after 20 years see what is possible for the €80,000. Sure, if the interest rates were to stay the same, it would only be €51,000. But if you assume an interest increase to 5%, which ultimately wouldn’t be unrealistic (the time that everything has to be kept low because of Corona will eventually be over), then we are at an additional 7 years for a total of €62,000, 10 years for a total of €68,000 (finished after 30 years). The BS variant is at €67,000 (so similar to variant 1) and you don’t have the question of what the interest rate will be after 20 years. Where is the truth? Son prefers variant 2 )

I throw my argument into the ring again: With variant 2, you lose approx. 5% interest compared to variant 1 after the fixed period, €17,000. You are willing to bear these additional costs. The only fair comparison for variant 1 is now to see how much % the interest rate can rise until variant 1 is also €17,000 more expensive than variant 2. Because if at 5% 1 and 2 are equally expensive, take variant 1. Because then you still have the chance that it will become cheaper.

I am with , I also find it unsympathetic not to repay anything over such a long period. Instead, you save separately, earn no interest on it, but pay interest on the loan. I also find it pointless to argue back and forth over 30-year terms about whether something could be 10k€ more expensive or cheaper. Break that down to the month, the differences reduce to a cocktail night at the pub.

I think, in this case, the question is which product you basically lean towards.
- Securing the interest rate over the entire period, no change risk: do the Bauspar contract.
- Repayment from the start: do the annuity loan.
Both variants apparently offer flexibility.

I also have a pre-financed Bauspar contract (over a small amount) and CANNOT make special repayments during the saving phase. Only when I repay the loan portion is that possible. Of course, it may be different with the product in question. Please check.

I fully agree as well. A building savings contract is somehow unsympathetic.

20 years of an annuity loan is great. The interest rates won’t suddenly jump to 5% or so overnight, that will be foreseeable:
If in 10 years the interest rates are like today, then use the special termination right, sign a new 20 years contract, and the whole thing is without residual risk. Perfect scenario.
If in 10 years the interest rates have already risen significantly and you are afraid you won’t be able to pay at the end of the fixed interest period, then you still have 10 years to either make special repayments, set money aside, or speculate on falling interest rates for another 10 years until the fixed interest period expires. A very low risk.

Somehow we are going in circles.

I would only take out a building savings contract if you can't get a decent long-term loan. In our case, a loan for 25 years caused the interest rate to shoot up by over 1% compared to a 10-year loan. So we chose the option: 10 years and savings from 2 building savings contracts. This way, we have interest rate security until the final repayment. If after 10 years the interest rate level is still that low, we will gladly take the money and then conclude an annuity loan again. With this option, we ultimately saved at least 30k. Of course, we pay for this security with the provision fees of the building savings contracts, but we still end up cheaper.

I would stay away from Riester.