House purchase 229,000 Lower Saxony - Assessment

~100% financing over 30 years, but that will make the house expensive. I would definitely think about that again. I’m not exactly sure what interest rates you get nowadays with ~100% financing, but with at least 5% repayment/interest, I find the rate of €990 a bit tight, I think it will be about ~€200 more.

First of all, thanks for the feedback. I currently have the financing proposals with someone else and also forgot to mention here that the large loan in the current financing proposal is financed through the [lbs], so we conclude a building savings contract that is saved up and only repaid when it is ready for allocation. Until it is ready for allocation, the interest rate would be 1.85%, then 2.4% at allocation readiness. The term calculated until full repayment is 30 years. I am currently obtaining offers for a classic annuity loan with a 20-year fixed interest rate. I will post for debate here as soon as I have both available again with all the data. Regarding our current monthly costs, I have also included the additional fuel costs if we continue to commute with 2 cars. In no case do I reach more than 1400 euros monthly burden, rather no room for reserve. We are rather frugal. For the classic loan, we had a non-allocated building savings contract with 30,000 available for the follow-up financing and someone in the family could conclude a building savings contract for 50,000 without closing fees. Best regards Grasorr

You must not rely on the stated interest rates for the building savings contract. We had an offer (I hope I can still gather the numbers) of 1.35% credit and a subsequent building savings contract with 1.38%. The effective interest rate of exactly this constellation was ultimately 1.78%. This is partly due to the fees for the building savings contract and mainly because you pay money into the building savings contract (for which you receive no interest) while you pay interest on the full loan at the same time. The difference to a normal annuity loan is that here you start repaying your loan with the very first euro and thus reduce your interest burden. But the nice ladies and gentlemen from the bank rarely tell you that ;) Make an Excel sheet for your situation where you adjust the monthly payments and you will quickly see where you pay which interest. For us, it was ultimately a single loan with a 30-year fixed interest rate and we had many variants on the table ;)

Here is the classic annuity loan

Purchase price 222,000
Modernization 20,000
Additional purchase costs 28,749
Equity 28,749

KFW WOHNEIGENTUM 124 Loan 50,000 € Nominal interest 10 years Nominal interest rate 1.40 Effective annual interest rate 1.44 Remaining debt after 10 years approx. 33,000
Loan 192,000€ 20 years fixed interest Period Nominal interest rate 2.73 Effective annual interest rate 2.78 Remaining debt after fixed interest period 90,000k approx. Special repayment and amount of 5% possible once annually
Monthly rate 961.31€