House planning completed - Is financing realistic?

So I don't necessarily consider the whole discussion to be very productive. Who still signs a mortgage contract today for 10 years at 3.15% interest? The current interest rates are significantly lower. For 10 years, you can somehow achieve between 2.20 - 2.30% with good negotiation. With good creditworthiness and financing below 65%, even about 2.1%. Even at 15 years, you don’t get to 3.15% – KFW loans can be deferred for repayment in the first years – so more room for special repayments on the main loan. In addition, the KFW interest rate is only 1.4%. When you do the math, the result looks quite different.

Just don’t let yourself be "taken in"........................

That doesn’t repay the loan significantly faster either, and the budget shouldn’t be reduced any further at the higher amount anyway.

So I don't necessarily consider the whole discussion to be very productive. Who still signs a mortgage contract today for 10 years at 3.15% interest?

Counter question: Who still signs a contract with only a 10-year fixed interest period at these low interest rates? Those who have to do this because otherwise the money isn’t enough will, with at least moderately high probability, be left without their house in 11 years. At 15 years, you at least have a chance to reduce that via a fixed deposit.

Yes, €3,300/month income. Sorry, I was misled by the €310,000 loan amount. Still not the world, considering that with a child this amount not only shrinks but expenses also increase sharply.

I also consider your expenses quite tight (as I already said). What’s important in this calculation is absolute, blunt honesty with yourselves. Because you have to manage with it and service the bank.

I don’t want to discourage you from anything – I’m not saying that :) – but at the beginning, we also imagined it quite differently from how it finally turned out and (at least so far) it’s good/better that way. Whether it was the right path, you won’t know for many years, but we are sure we did not take the “wronger” way that wasn’t planned in the beginning.

So, by now there is a concrete offer from the bank that I will briefly explain in case it can also help others.

House costs €385,000
-Equity €75,000 (+ land €30,000)
=Financing gap €310,000

The following proposal from the bank:
€50,000 KfW energy-efficient building loan (KFW 55 house) at 1.41% effective; first 5 years no repayment
€50,000 KfW home ownership loan at 2.43% effective, first 5 years no repayment
€210,000 bank loan at 2.48% effective, 10 years fixed interest, initial repayment 2.35%

After 10 years, 2 building savings contracts that we are already paying into will mature, securing a special repayment of €65,000 after 10 years and reducing the remaining debt after the fixed interest period from €190,000 to €130,000 at 3.75% (possibly less, as from April 13 new building savings rates will come, which we could switch to without major costs). The remaining €60,000 would then either be less due to special repayments or, in the worst case, fully refinanced.

According to this calculation, we would be finished after 27 years (without special repayments). The monthly installments (including 2x building savings contracts + prepayment) will be €1400 for 4 years, then €1200, and after 10 years until the end €1100.

After reconsideration, the rates are still a bit too high for us (especially with a desire to have children in 4 years). At the moment, it looks like we will need about €25,000 less as of today, possibly another -€10,000; this will be decided in the next 2 weeks. We would then like to apply this not to a shortening of the term but to a reduction of the rates.

Best regards kerhan

You have a remaining debt of 250,000 after 10 years? And that with an uncertain interest rate. Congratulations.

The 25,000 that you want to use less, just leave it in the loan and agree on a 10% return right. That way you have possible security in case you should need it after all. If not, then return it to the bank for free. Actually, a construction project always ends up being more expensive than initially planned. I hope you calculate that very generously. About 10% should still be reserved somewhere.

Hello Der Da,

uh, no... after 10 years I have an outstanding debt of €190,000, of which €130,000 are already secured by the building loan or the interest on it. It only gets uncertain with the €60,000, which, in the worst case, would have to be refinanced at the current interest rate.

We can safely set aside the €25,000 and possibly the additional €10,000, there is still almost €40,000 buffer! We have also agreed on a refund of money if not needed, as well as a special repayment of €10,500 per year.

Best regards

Hello kerhan,

I consider the interest rate of 2.48% offered to you for 10 years to be clearly too high! With your financing requirement of about 80% - you should be able to achieve about 2.10 to max. 2.20% with good negotiation.
Feed Aunt Google with the search term "current mortgage rates" - this way you can reliably read the current offers.

Print this out and talk to your bank - they will certainly do something, you just have to stay tough and patient!

Regards, carthamen

Hello kerhan,

I consider the interest rate of 2.48% offered to you for 10 years to be clearly too high! With your financing requirement of about 80% - with good negotiation you should be able to achieve about 2.10 to max. 2.20%.
Feed Aunt Google with the search term "current mortgage rates" - this way you can reliably check the current offers.

Print this out and talk to your bank - they will certainly do something, you just have to remain tough and patient!

Regards carthamen

Thank you very much for the tip, we still have two more financing appointments in the next few weeks, one at another bank (the offer now came from the house bank...) and then we will also go to Interhyp and see what Interhyp says. I will pay close attention to that again!