Maximum loan amount based on our monthly burden

I told you. 41 plus 25 equals 66. That is about retirement age. Then it has to be done. Paid off. Finished. Karsten

so if you are really 41

How do you come up with 41? I only see 41 posts...

Regardless.

Yesterday I was at a broker who told me that we could also get a loan amount up to 500,000 euros at an effective annual interest rate of 1.97% and with 2.5% repayment, which would correspond to a monthly rate of 1800 euros, with a 5% special repayment option and free change of the repayment rate. The remaining debt after 20 years without special repayment would be 188,000 euros. To me that sounds plausible.
Do you perhaps have an opinion on the broker’s statement? It’s not about going into debt at all costs.

Would you be finished before retirement without special repayment? Or would there still be something left? Even if 20 years is still far away. But 188,000 is still a nice amount.

you're right, messed up But I still stick to "only" 2.5% repayment and a special repayment right that is hardly used (if we're being honest, it is often omitted)

I am 37 and my wife is 32. We (as non-professionals) have set ourselves the goal of being debt-free after a maximum of 30 years. Sooner and safer would of course be better. I have calculated a follow-up financing over 10 years at a higher interest rate of 3.5% with the same rate. Without special repayments, there would still be an outstanding debt of 8,700 euros. If the interest rate is 5%, there would still be an outstanding debt of 30,400 euros after the follow-up financing.

Considering the numbers that sometimes come up here, I personally feel sick. Normally, I would never finance beyond retirement.
Likewise, you have to be able to carry a house alone for half a year at some point. In our case, I do, as the main earner and civil servant.
Right, real estate agents earn their commission. Often depending on the amount of the loan they arrange.
We took a fee-based advisor who is paid directly by us (and not indirectly through fees). He calculated everything down to the smallest detail and took care of it. He also listed the income and expenditure sides in detail and advised us so that we can live without problems. Of course, no 400k€ come out of that.
By the way, in my opinion, a house is a luxury position that raises the standard of living. But essentially, you don't make money, but rather sink a lot of it. You pay EVERYTHING yourself.
I have never lived as relaxed as when renting.
But also not as free as in your own house.

Joachim, absolutely right.
And who actually put the idea into our German heads that a house must have a basement for storing supplies for the next world war, a kitchen island, two bathrooms, a dressing room, a pantry, a living room the size of a ballroom, a double garage, shutters, blinds, glazed roof tiles, etc. Drive through the NL and see how much smaller homes are, but how high is the ownership rate there. It can be done differently, and then the finances work out better too. No, the financial brokers and house sellers don’t like to hear that... “Do you really want to build such a hut?” someone said to me. Of course, he didn’t get the contract. Karsten