How would you finance €340,000? Split it?

Hello everyone!

We had an appointment today at the local Sparkasse and inquired about financing for 340,000€.

The employee advised us and said it would be a good option to split the amount and fix it at different terms.

100,000€ for 30 years
120,000€ for 20 years
120,000€ for 15 years

What do you think of this option?

He will send us a concrete offer by midweek. This was just the introductory meeting.

This option will of course be more expensive for us than if we fix 340,000€ for 15 years, we know that. But much more expensive?

Or do you think this caution is unnecessary and it’s enough to fix everything for 15 years?

I know, nobody has a crystal ball, but we would really appreciate an assessment from someone NOT AN ADVISOR.

Hello, just wait for the offer. Otherwise, he is talking about terms, not fixed interest periods? What repayment are you aiming for? In the current low interest phase, I would choose a fixed interest period of 15-20 years and the highest possible repayment. After 10 years, you always have a special termination right. Have you also contacted a broker?

- The tighter the financing, the longer the fixed interest period (because interest rate increases would otherwise break your neck)
- The lower the initial repayment rate, the longer the fixed interest period (because the higher the remaining debt, ergo the risk)
- personal need for security
- do not secure the interest rate for the entire term (the last 5 years can make a considerable difference in the interest rate, and this is calculated over the entire term and the entire amount, but in the last years the remaining debt is low)

These are some of my basic guidelines. Everything else is individual and can look different in individual cases.
As already mentioned – wait for the offer and then post again with more information.

On Thursday we have an appointment with an intermediary. But we wanted to have an offer from the local bank first for comparison.

He spoke of a fixed interest rate period.
So to fix 3 blocks at different time intervals to bring some security to the whole matter.

We aim for a repayment of €1100-1200. We don’t know exactly how much of that is repayment. It will probably all be detailed in the offer.

On Thursday we have an appointment with an intermediary. But we first wanted to get an offer from the local bank for comparison.

He spoke about fixing the interest rate. So fixing in 3 blocks for different periods to bring some security to the whole thing.

We are aiming for a repayment of 1100-1200€. How much of that is principal repayment, we do not know exactly. It will probably all be specified in the offer.

No way.

At the savings bank you don’t get a fixed 3.0% interest rate. And if so, only with combination products.

As mentioned, we will receive the final offer at the end of the week. I also said that I would like an offer for a normal loan of €340,000 with a 15-year fixed interest rate. Are [Kombiprodukten] discouraged?