Interest rate / rate - bank calculation

HilfeHilfe and toxicmolotow: Ok thanks, that's exactly what I meant! I was just wondering, based on what facts/calculations the construction contractor came to the conclusion that instead of, for example, a 1400 euro installment, I should also be able to afford, for example, 2200 euros. If even the banks themselves are not clear on which hypothetical interest rate to assume, then that exactly answers my question.

Conversely: Currently, the loan would be paid off after about 30 years if you calculate without special repayments, etc. But I would like to be finished with special repayments and everything after about 20-25 years. Therefore, I currently have a 20-year fixed interest rate. Are there also offers with a 30-year fixed interest rate? Because in that case, I would be finished within the fixed interest period. Is the case of an interest rate increase also taken into account?

The other way around: At the moment, the loan would be paid off after about 30 years if you calculate without special repayments, etc. But I would like to be finished with special repayments and everything after about 20-25 years. Therefore, I currently have a 20-year fixed interest period. Are there also offers with a 30-year fixed interest period? Because in this case, I would be finished within the fixed interest period. Is the case of an interest rate increase also taken into account?

Yes, there are, or rather, when I took out the loan in 2013. At that time, mostly insurance companies offered the 30-year fixed interest period. It can be interesting in individual cases because of the interest rate.

I don’t quite understand what you are afraid of now? Of the internal evaluation of a bank or the interest rate risk. 20 years is already reasonable. Then the remaining debt should not be that high anymore.

As toxi has already written, every bank calculates differently. You can assume 1–20% interest. Banks will choose an interest rate derived from something (interest rate curves, historical values, or whatever).

But this should not scare you either. If you repay a loan properly within 20 years, there won’t be a huge remaining debt left. If the market interest rate is then 5%, it shouldn’t make you poor either.

I don’t quite understand what you’re afraid of now? The internal evaluation from a bank or the interest rate risk. 20 years is quite reasonable. By then, the remaining debt shouldn’t be that high anymore.

I am not afraid of the interest rate risk. That is relatively secure with 20 years; by then, a very large part will be paid off. I find it more unpredictable for me, what amount of installment I can go with. Because between 1400 (my wish) and 2200 euros (what the person from the construction company said) I find the range extremely large.

But the difference between 1400 and 2200 is exactly the interest rate risk.

Exactly, and for that I wanted to know if there is any general formula/guideline that the banks rely on.

exactly, and for that I wanted to know if there is any general formula/guideline that banks base themselves on.

nope. Banks currently assume a minimum repayment of 2%. Anything below that becomes unrealistic.