Is financing feasible? Finished house for the money?

With extremely low prices, I would always be skeptical. Usually, the construction service description is more than scanty. For example, it could be that only very small windows are included, the roller shutters are completely missing, no floor retractable ladder is included, no outdoor faucet, tile value only 20 euros, etc. Usually, floor plan changes then cost far too much, so in the end you still pay "Sum X," which somehow costs that much everywhere in the area. I would advise you to have corresponding offers made and to compare the construction service descriptions very carefully. You will then get a feel for how much it will cost you.

Best regards Sabine

hm. You need about 450,000 loan. Since equity is only enough for the incidental purchase costs, it comes down to 100% financing. With such high loan-to-value ratios, you shouldn’t start with less than 3% repayment. Many banks don’t either.

So let’s take KFW 55 (fixed for 20 years) and the rest via classic annuity for 15 years and 3% repayment.

Right now, the interest rates are around 2.2%; possibly a small civil servant bonus.

That makes 1890€ for KfW and bank loan already.

Since it’s only 15 years and *only* 3% repayment, there are another 150-200€ per month for interest rate hedging instruments; the RS in 15 and 20 years is still a small piece

Plus incidental costs for the house of 2.5€ per sqm = 325€

That adds up to about 2365 - 2415€ per month

If you want to push the loan rate below 1500, you would have to repay only 1.5%.

I couldn’t sleep peacefully with that.

Be honest with yourselves; but at the current time, this isn’t for you ops:

Hmm, so we received an offer from Interhyp in which we would take out 300,000 through the bank, 100,000 through kfw, and 50,000 € through the Wohneigentumsprogramm. With an interest rate fixed for 20 years (unfortunately I don't have the interest rate in mind), we would pay 1,150 € during the first three years at 2% repayment (due to planned child and parental leave 3 repayment-free starting years) and then 1,550 €.

Whereas we stay below 450,000 € and want to pay as little as possible under 1,500 in installments. We have calculated ancillary costs at about 400 € per month. That would put us at a monthly burden roughly as high as our warm rent + Bausparvertrag. So we could continue to save as much as we do now.

You pay about €1350-1500 for the amount. With repayment rates around 2 percent. In my opinion, that is completely okay. When the fixed interest period ends in 10 years, your salary will look completely different and you will certainly be able to repay 5-8%...

I took a photo here of the offer from Interhyp. This is from March 2016

You pay about €1350-1500 for the amount. With repayment rates around 2 percent.

At 1.78% blended interest rate, 3 years repayment-free and 2% repayment, that means roughly 40 years of financing. Finished just in time for retirement, if that still exists by then.