Need follow-up financing with a short term

No matter whether you repay the financing or not, you don't have more or less debt in total because of it. Don't you find the feeling of having no more assets (= surrender values LV) unpleasant?

No, I don't find it unpleasant at all since it's only one of four LVs and the pension starts at the earliest four years later. By then, I will have the 70k back in the account, and the other three LVs will mature.

So, the bank's offer is now here: 70,000 at 3.71% p.a. as an annuity loan until 12/31/2026.

: Please give an assessment of whether 3.71% can be considered fair given the current situation / interest rate environment and the crystal ball of what it will be in one year.

Thank you very much

No, I don’t find it bad at all, since it’s only one of four LVs and the pension starts at the earliest four years later. Until then, I will have the 70k back in the account and the other three LVs will come due. So, the bank’s offer is now here: 70,000 at 3.71% p.a. as an annuity loan until 12/31/2026. : Please give an assessment whether 3.71% in the current situation / interest rate environment and with the crystal ball about what will be in one year can be called fair. Thank you

It’s a good interest rate! Go for it.

Please provide an assessment of whether 3.71% can be considered fair given the current situation / interest rate environment and the crystal ball prediction of what it will be in a year.

Basically, less is also possible. BUT: Then you need another bank, a new mortgage (or assignment - which also costs again), etc. The amount is not that high either. So overall: Go for it! P.S. Calculate the savings in €. 0.2% less interest is €11 per month. Costs for a mortgage assignment with €100k mortgage (assumed) are almost as high as the savings.