Loan with annuity loan and 2 linked building savings contracts

You cannot calculate by mixing anything. You have to consider each component individually and calculate it accordingly. Then add across each month. But it works and Excel is a good start.

You can't calculate like that by mixing things up. You have to consider each component separately and calculate it that way. Then add them across every month. But it's doable and Excel is a good start.

I already thought it would be too easy.

The easiest way is to represent the cash flows in Excel. Table header approximately Date | Outstanding balance | Interest | Repayment | Annuity .... The internal rate of return is calculated over all net payments per month (initially the loan disbursement, then interest and repayment until the end). You can compare this value.

As I said, if you don’t understand a product or there are too many appointments/ replacements/ cash flows, you get confused and should leave it alone. My opinion

With a net income of 4,400 EUR, the 34% is quite relaxed, even when children arrive. However, the information above about how the income is distributed between man and woman is missing.

I find it more difficult to get annuity loans with 20 years or even longer terms. At least the savings banks and cooperative banks we spoke to generally do not seem to offer such loans. Some savings banks do not even offer 15 years or only under certain conditions.

On the other hand, many online providers often seem to have 20 and 30 years.

Regarding the 1st paragraph:
Well, that is clearly a question of risk tolerance. For example, we have a higher net income and will plan for a maximum savings rate of 20%...

Regarding the 2nd paragraph:
That can be agreed upon. We are very fortunate to have the local savings bank in Hanover, which has already offered us an annuity loan with a term of 25 years.

In general on the topic:
We will probably prefer flexibility and accept paying more on interest. However, we are still waiting for one or two counteroffers...

Hello,

a decision needs to be made this week and I have now received another offer, which could be an alternative alongside the offer from the 1st post. I would also like to present this here and ask for your advice on the advantages/disadvantages of the offer from Deutsche Bank and the new offer from Hypovereinsbank:

2nd Offer (HypoVereinsbank)

This is composed as follows...
--- 1. ---
320,000 EUR annuity loan
2.05% nominal interest rate (2.0% repayment)
20 years term
10 months interest-free provision period
5% special repayment possible
No change in repayment possible
1080 EUR monthly rate

--- 2. ---
50,000 EUR KFW home ownership program 124
1.50% nominal interest rate (2.26% repayment - repayment-free 1st year)
10 years term
4 months interest-free provision period
156.52 EUR monthly rate

This loan is secured with the following building savings contract, funded in parallel and redeemed after 10 years:

39,000 EUR building savings amount
2.35% nominal interest rate
10 years term
127.14 EUR monthly rate (during the loan)
234.00 EUR monthly rate (after the KFW loan term has expired)

Monthly burden in the first 10 years: 1364 EUR
Monthly burden after the KFW loan has expired, i.e. from the 11th year: 1314 EUR

After 20 years, without any special repayments, there would be a remaining debt of approx. 165,000 EUR on the annuity loan.

In summary, the Deutsche Bank offer costs about 110 EUR more per month, but it eliminates any interest rate risk over the entire term. In the HypoVereinsbank offer, approx. 165,000 EUR (if no special repayments are made) remain as residual debt after 20 years. Now I am unsure how to evaluate/classify these 165,000 EUR. Let’s assume the "worst case" scenario and say that in 20 years the interest rate is at 10% — and I would only have about 10 years left to repay the residual debt until retirement... Then I would have to pay 2,100 EUR with 6% repayment in order to finish the remaining amount in 9 years and 10 months.
As said -> "worst case" ... the very good collateral at that time (in 20 years) is not even taken into account in this calculation. Positive about the HypoVereinsbank is that we have low fees for the one building savings contract (1.0% compared to 1.6% at DB, and we would only have one building savings contract instead of 2 at DB) and due to the lower burden, we would also have more flexibility during a possible child phase, as my wife would also reduce her working hours somewhat.

How would you evaluate Offer A (1st post from Deutsche Bank, no residual debt, no interest rate risk) against Offer B (HypoVereinsbank with residual debt, with a bit more leeway) and what would you advise?

I am torn and look forward to your comments.

Best regards & thanks for your effort!
Gatho