House feasible or are we overextending ourselves?

Hello,
With a full repayment and a 25-year fixed interest rate (until retirement), that would be about 2700 euros monthly burden. So definitely doable, but I would critically question the expenses again. People tend to think positively. Sure, you save 2000€ on the side, but do you really never buy anything from that (car or something like that)?? With a house, there are also a few more costs that do not necessarily hide in the additional costs with rent...

640,000€ is definitely a significant amount. You should definitely secure yourselves accordingly. No one wishes it, but in the event of an accident or illness of one partner, it should still be manageable for the other or appropriately insured (BU, risk life insurance...). For you, it would certainly be borderline.

From my point of view, it is indeed a risk if something should go wrong. From my experience, however, I would like to add something: If someone has moved frequently, especially with children, sometimes over time a feeling of rootlessness develops because one was never allowed to settle and stay anywhere. Then children will partly be restless their whole lives searching -> in the worst case alcohol, drugs, depression etc. If there is a (developing) feeling of home at the current place it should be counted on the positive side. If there is a feeling of home -> less illness, less depression, more joy of life -> better conditions for repaying a loan. Sylvia

Thank you for your thoughts. We had a consultation today at Dr. Klein. It is probably feasible, but there will be no 20-year fixed interest period for us, as we would need another 40,000 in equity. Of course, nothing must happen, things like disability, death, serious illness.... But in this case, we would probably have to sell the house anyway. It is a risk... you are probably all right about that. Best regards cookie

There will always be a residual risk in the dimensions – however, these can be reasonably mitigated, e.g., in the form of a [Risikolebensversicherung], which would also be recommended.

A proper [BU] can also cushion a lot in case of emergency.

I wish you good luck and maximum success in your decision-making!

Best regards.

Thanks for your thoughts. We had a consultation with Dr. Klein today. It is probably feasible, but we won’t get 20 years fixed interest rate, since we would need another 40,000 in equity. Of course, nothing must happen, things like disability, death, serious illness.... But in that case, we would probably have to sell the house anyway. It is a risk... you are probably all right about that.
best regards
cookie

There are affordable solutions for such risks. Especially a life insurance policy equivalent to the outstanding loan amount costs NOTHING compared to the mortgage. For us, it is 130 € / year contribution.