I find this funding quite good - and you?

Hello everyone,

I listened to you and we compared a few more banks. Somehow, there wasn't that much difference.

In the end, it will most likely be the slightly more expensive bank, with which I have been a customer since my first savings account and where I just feel comfortable - the advice was also great (and with the other one, flop).

We are lucky and have approval for housing subsidy ([Landesförderung]). We are getting 100,000,- fixed for 20 years at 3.45% effective interest, 10% special repayments.

Here is the breakdown (rounded):

310,000 total volume
60,000 equity

--> 250,000 to finance.

100,000 3.45% 20 years fixed 10% special repayments ([Wohnraumförderprogramm])
50,000 1.90% 10 years fixed ([KfW Energieeff.])
50,000 2.75% 10 years fixed 10% special repayments (bank annuity loan)
50,000 2.6 % 5% special repayments ([Wohnriester-Bausparer])

What do you think? Looks pretty good, right? Also somewhat safe, I would say. As a layman. The competitor bank (same company, different branch) could fix the 50,000 annuity loan for 15 years, then for 3.2%. Is the extra cost worth it for 5 more years of security on a relatively small component?

I’m very curious about your opinions and already say thanks!

LHT

With an initial repayment of 2%, the small annuity loan still has an outstanding balance of €38,500 after the fixed interest period. If the interest rate doubles during the follow-up financing, the rate would increase by ~€90 with the same repayment.

After 15 years, you have an outstanding balance of €31,000.

I believe the two options are quite similar.

Hello everyone,

I listened to you and we compared a few more banks. There wasn’t really much difference.

In the end, it will most likely even be the slightly more expensive bank, with which I have been a customer since my first savings account and where I simply feel comfortable – the advice was also top (and a flop at the other one).

We are lucky and have approval for housing subsidies (state subsidies). We are getting 100,000,- fixed for 20 years at 3.45% effective interest, 10% special repayments.

Here is the breakdown (rounded):

310,000,- total volume
60,000,- equity

--> 250,000,- to finance.

100,000,- 3.45% fixed for 20 years 10% special repayment (housing subsidy program)
50,000,- 1.90% fixed for 10 years (KfW energy efficiency)
50,000,- 2.75% fixed for 10 years 10% special repayment (bank annuity loan)
50,000,- 2.6% 5% special repayment (Wohnriester savings contract)


What do you think? Looks quite good, doesn’t it? Also reasonably secure, I would say. As a layman. Competitor bank (same company, different branch) could fix the 50,000,- annuity loan for 15 years at 3.2%. Is the extra expense worth it for 5 more years of security on a relatively small component?

I’m very curious about opinions and say thanks in advance!

LHT

Hello,

how long is the interest fixed in the housing subsidy program? Is it really 20 years or rather 10 with a repayment plan designed for 20 years?

How long is the Wohnriester fixed?

For my taste, you are taking too much risk at this interest rate level. With these dream interest rates, you play it safe and agree to 15 or 20 years fixed interest. What will you do in 10 years? In the worst case, you have to refinance about 220k. I doubt we will still have such dream interest rates then.

The special repayment option won’t save you either. It’s always nice to rave about how high you can make these. You have to actually do it :cool: Most can only manage 5-10% special repayments. They are rather nominal amounts of 1, 2, 3k per year.

The 100,000 are fixed for 20 years.

I don't understand... which federal state?

what I don't understand is where the "subsidy" is... I recently got a fixed rate for 30 years at 3.25% at my bank...

Hello

what loan-to-value ratio?

which bank, happy to receive by PM

thanks

since several have already inquired:

Sparda-Bank BW mediated through a financial service provider, up to 60% loan-to-value, 10% special repayment, no commitment interest until April 2014

Conditions are as of May, no idea if much has changed since then.