Is a construction financing advisor present?

I wouldn't make it dependent on the monthly burden. Because your wife's view also has a downside: If you pay €50 less per month for 12 years, it could well be that you end up with a higher outstanding debt. And since you - unless you make massive special repayments - will have to refinance anyway, the outstanding debt is indeed a quite relevant factor.

So if I were you, I would go ahead and compare the total costs of the 3 options. What will the loan cost me over the next 15 years, and what outstanding debt will I still have then? Adding these two things together will give you the total cost.

This is personally more important to me than the different monthly burden. Because only in this way can I compare the different offers.

Well, that's a bit difficult to calculate because the KFW loan is still included in the Sparkasse loan, and this one already ends after 10 years -> refinancing will be necessary. Therefore, it's hard to say the remaining balance for the Sparkasse offers (here the Sparkasse loan and the KfW loan have to be added together) that will still be outstanding. For that, you would need to know the interest rate of the KfW follow-up financing today.

For that, you would already need to know the interest rate of the KfW follow-up financing today.

Once the data is in Excel, you can also "play" with interest rates and calculate what-if scenarios.

Edit: There was nonsense here, sorry

That’s true, but this applies to the entire follow-up financing and not just to the KFW loan in 10 years.

What I’m trying to get at: You cannot say that offer A is cheaper than offer B just because you pay €50 less per month for 15 years.

Your example: With the second Sparkasse offer, the rate is €50 per month cheaper over 15 years, so €9,000 less. But what if you still have a remaining debt after 15 years that is more than €9,000 higher than in the offer where you paid €50 more per month from the start?

And I am almost certain that this would be the case because the loan amount remains the same, the interest burden is initially the same, and therefore the €50 more per month would go entirely into repayment. So after the first year, you would have repaid €600 more; in the second year, you would have €600 less debt to pay interest on. And due to interest and compound interest, this grows to a not insignificant amount.

In our case, it’s like this: we can get a €20,000 interest-free loan from my mother-in-law. This saves us more than €4,000 in interest payments over the entire term. Sounds crazy, but according to the above calculation, it actually is like that.

Therefore, I can only recommend that you really calculate this, so that you don’t end up fooling yourselves in the end by only looking at the effective interest rate and the monthly burden. Alternatively, you put the €50/month aside and work with special repayments or reduce the remaining debt after 15 years with it. But whether you do that consistently is another question.

Hello everyone,

my nickname probably already reveals that I belong to hagiman. Now I also have an account and can participate in the discussions.

Thank you very much for your tips! Just to make sure I understand everything correctly:

With the cheaper second Sparkasse offer, 9,000€ is saved, ok, I can follow that so far. However, the remaining debt after 15 years is not necessarily (much) higher than with the Ing-Diba offer. Because the 50€ more I pay with Ing-Diba does NOT go entirely into repayment but due to the different interest rate also largely into interest. So I cannot simply calculate 50€ more repayment per month! With the cheaper Sparkasse offer, however, I could (if we set aside the saved 50€) plan an annual special repayment of 600€ (this 600€ then actually goes ONLY into repayment). Am I understanding that correctly so far?

Since the KfW loan already expires after 10 years, hagiman calculated the remaining debt after 10 years and there is no 2,000€ difference... Now I am trying to transfer this into Excel so I can play around with it a bit. But to be honest, I also think that it could be tricky - due to the different durations of the main loan and the KfW loan. Keep your fingers crossed that I become master of Excel.