Is a construction financing advisor present?

I then took the trouble to calculate how bad the interest rate must be on the follow-up financing for the KFW loan for the Ing-Diba offer to be better (looking at the monthly rate).

The Ing-Diba loan is quickly calculated.

Loan amount: €312,000
Nominal interest rate: 2.12%
Repayment: 2%
Term: 15 years.

Rate: €1,071
Outstanding debt: €201,920

With the two Sparkasse offers it becomes more difficult, since after 10 years the KfW loan runs out and must be refinanced. When comparing all three offers after 10 years, the second Sparkasse offer (the one with 1.99%) is naturally the best (because you can collect the difference in the rate and use it as special repayment).

Sparkasse €262,000 (2.07% interest / 2% repayment) €50,000 KfW (with 1.61% interest and 2.22% repayment)

Rate in the first 10 years = €889 Sparkasse + €160 KfW = €1,049 (thus €22 better than the Ing-Diba offer)

After 15 years, an outstanding debt of €169,922 remains from the €262,000. (The rate for the Sparkasse loan remains at €889 per month for 15 years)

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After 9 years (one year is interest-only), an outstanding debt of €39,258 remains from the €50,000 KfW loan (the rate for the KfW loan was €160 during these 10 years). This must be refinanced.

Let’s say the best offer in 10 years is at 5%, then the following results:

*I have only calculated the refinancing for the 10-15 year period so that the comparison to Ing-Diba is possible*

Rate €236 and an outstanding debt of €34,319

Outstanding debt Sparkasse after 15 years + outstanding debt KfW after 15 years (at 5% for the 10-15 year period) = €169,922 + €34,319 = €204,241

The rate from the 10-15 year period is: €1,125 (889 Sparkasse + 236 KfW refinanced)

If you now consider that in the first 10 years we saved €22 compared to the Ing-Diba offer, that results in €2,640 (22 x 120). We subtract this from the outstanding debt = €201,601

I then also calculated how bad the refinancing loan must be for the monthly rate in the 10-15 year period to be identical for Ing-Diba and Sparkasse.

I came up with a value of 3.35%. Below that we pay less per month, above that more (as in the example above with 5%).

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I know this is quite a lot of text. Is the calculation correct?

With the second Sparkasse offer with 1.99% and only €40,000 KfW I come to a breakeven refinancing interest rate of 4.2% and an outstanding debt after 15 years of €199,779 (due to the lower monthly rate, even more special repayments were possible and due to the lower monthly rate the interest rate of the follow-up financing can also be higher until the rate is identical to Ing-Diba).

Somehow it’s getting more and more confusing. Are you now financing 308k or 316k or 312k? Is the rate at Ing-Diba 1071 or 1085? You stated Offer No. 2 as 1053 a page earlier, now it’s 1049, and why do you even need to refinance?

I confess, I have no experience with KfW loans, but they do offer terms of 35 years, only the fixed interest period is limited to 10 years, and quite a bit would have to happen before KfW demands significantly higher interest rates than what is "usual" at the respective time, right!?

The house we wanted was snatched away from us, hence the slightly higher financing requirement than at the very beginning of this thread.

Yes, the rates are different because one was calculated by the mortgage lender and the other with the repayment calculator mentioned above. What matters is that I calculate all three offers the same way. I can’t tell you why the repayment calculator comes up with different monthly rates.

Yes, KfW is possible with a term of 35 years. After the 10 years of fixed interest, KfW will also come to you with a follow-up financing. However, experience has shown that these conditions are very poor and you get better conditions on the market from another bank. Where we do the follow-up financing is initially unimportant; what matters is that a follow-up financing after 10 years is necessary for the Sparkasse offers.

Oh, and the KfW interest rates are not that good at all. Just have a look at the interest rate you currently get from a bank for a loan of €50,000 with a fixed interest rate of 10 years (exactly what you get from KfW). You’ll easily get around 1.6%, exactly the same as what KfW offers you.

You are right, I googled it, the follow-up financing at KfW is apparently no longer subsidized and therefore at least not as cheap anymore.

In your place, or rather in your situation, I would probably get a comparison offer with at least 25 (better 30) years of fixed interest. Whether it's 10 years, as with the KfW, or 15 years, as with the Ing-Diba – in any case, you run the risk of not being able to manage the considerable remaining debt with rising interest rates.

The follow-up financing is often no longer done through the KfW, as the banks can often make you better offers because the loan-to-value ratio is then lower.

Basically, it doesn't matter where the money comes from as long as the interest rates are right.