Loan with an interest rate of 2.51% - Tips for financing

Hello everyone,
like many here, I plan to build a house :o
Here is the offer from my bank:

Loan amount: 340,000,- (55,000,- equity)
Divided into a bank loan of 290,000,- with an interest rate of 2.51 % (not an online bank, fixed interest rate for 10 years, no special repayments possible)
and Kfw loan (153) of 50,000,- with an interest rate of 1.41 %

Can I not combine this with a Kfw program 124? The bank did not even offer this to me (I couldn’t ask further because my advisor was away). Can a bank decide this at its own discretion, or can I insist on the two loans?

Mathematically, it makes sense, because in total I will pay about 2,500 € more after 10 years.

In your opinion, are there more sensible ways to finance? For example, through building savings contracts or something else. I think the interest rate is very good, and combined with 2 KFW loans, there would also be a certain interest rate security. I think that the KFW loans will not increase as strongly as the general bank interest rates.

I just have concerns about what happens after 10 years. This level cannot be maintained, and with this loan amount, there can be a nasty awakening after 10 years and I might have to pay an extra 400 €.

Maybe you can give me some tips on this offer or how it can be divided more sensibly.
Can the bank’s interest rate be renegotiated, e.g., to include special repayments? Or is that uncommon with banks.

Thanks and regards
Stephan

1. The option for special repayments is already almost standard today 2. Changing the repayment rate during the term also increases flexibility 3. I don't like building savings financing 4. A 10-year fixed interest rate is only interesting in the current interest rate landscape if you can repay to zero within this time (then interest rates of 1,... are also possible) 5. KfW 124 is more expensive than your offer (it's still at 2.55% or?), by the way the bank doesn't have to do anything

Conclusion: Go to a credit broker (Intern..., Dr. Klei... etc.) and get free and somewhat independent advice. Don't think about 10 years fixed, the question should rather be: Do I take 20 or even 30 years fixed, since the costs for this are not much higher. However, if you have to count every euro, then you should rather question the entire project.

P.S. With an alternative offer in hand, almost every house bank is willing to negotiate.

KFW124 should be around 2.0x. At least, that's what I finalized in January. But I regret it. The commitment interest must be paid from the 4th month (+2 days) :(

Otherwise like my predecessor :)

Hello,

we have also combined our loan with a [Wohnriester] contract. That’s definitely not for everyone, but my husband has 4 children (3 from his first marriage and one together), so it is worthwhile for him.

We were able to finance €140,000 with a "normal" bank loan, at an effective interest rate of 3.18% for 30 years. Of course, we pay more than with a guaranteed interest rate for 10 years, but I think that even the 3.18% is cheaper overall. We can change the repayment three times. At the beginning, we only repay 1% (this loan), but as soon as the maintenance obligation for the first three children ends, we definitely want to repay more.

As a KfW loan, we only took the energy loan. The catch with these KfW loans is that you cannot repay anything during the first year at all and the interest rate is only guaranteed for 10 years. The interest rates sound favorable at first, but you simply cannot repay that much.

The field of financing is really very confusing. We were lucky to have a friend as a bank advisor and feel very well looked after there.

Otherwise, really get an independent bank advisor involved.

I am also cautious with Riester. If I emigrate, go to a nursing home, or want to sell the house, I have to repay the subsidy. I am skeptical about that.

Hello everyone,
Riester is not an option for me. I don’t think much of it at all. In my opinion (personal opinion), the disadvantages outweigh the advantages. Some points have already been mentioned.

I have submitted an inquiry at Dr. Klein. Let’s see what comes of it. Additionally, I have asked the mentioned bank about other conditions like special repayments and a 20-year fixed interest rate.

Let’s see how they respond.