Humane residual contributions in follow-up financing

Hello,

is there actually a range in which the remaining amount for a follow-up financing should move? For example, with a loan term of 15 & 20 years? Since none of us know what the interest rate will be by then, an approximate corridor from our banking specialists here in the forum would be helpful.

is there actually a range in which the remaining balance of a follow-up financing should fall?

Not generally valid. Are you already 65 or 40 years old then? What are the income conditions? The asset situation? Rented or owner-occupied property? Etc. Just ask specifically.

I have roughly calculated about ~500,000 for myself including equity etc. After 20 years of loan term, a remaining debt of ~130,000 euros would be outstanding without Sondertilgung and 3% repayment. That seems quite high to me if the interest rates were to rise. I would be 55 years old then and that would probably pose a risk whether the bank would still grant a loan?

1.) The bank always gives you a term in private construction financing until the calculated end of the financing. So it can't simply kick you out after 20 years but can at most offer you a bad condition.
2.) You should actually smile wryly at a remaining debt of T€ 130 in 20 years. What is supposed to happen then? You will have 20 years of inflation and salary increases behind you, and the T€ 130 will not be worth much anymore.
3.) At the age of 55 – that is, in 20 years – financing T€ 130 somewhere is totally relaxed (as of today or based on the experience of the last 25 years).
4.) Worst case: T€ 130 with a 10-year annuity equals €1,100 per month. So what...

You are worrying about a "problem" that is not really one. The average interest rate over the last 3,000 years is 4%. Of course, you might be unlucky and it could also be 8%. But with 2% repayment, the term is then only about 20 years (due to the high interest rate).

Makes sense - thanks - I'm just trying to understand all aspects. What do you actually mean by "10er Annuität"?

Calculate with 2% inflation including salary adjustment per year. Then the probably increased value of the property. 130k is a piece of cake.