Our offer for financing

Sorry, somehow I forgot the thread ^^

So, this is how it looks for us right now (Yes, it looks very confusing at first)

Variante 1

150,000€ with 2.28% and 1% repayment fixed for 30 years
35,000 Wohnriester man (secured with building savings contract)
35,000 Wohnriester woman (secured with building savings contract)
KFW home ownership 50,000 (secured with building savings contract)
Kfw 70 50,0000 (secured with building savings contract)

This gives us full interest rate security over the entire term of 29 years with an effective interest rate of 2.20% with full repayment.
The deferred taxation will probably amount to around 20,000€ with installment payments and 14,000€ with direct settlement. However, allowances and tax reductions will still work in our favor, which can compensate for the 14,000€ again.

We have the option to change the repayment three times for free and make 5% special repayments.

The installments are slightly staggered so that we have a bit more breathing room in the first 5 years, as we are planning to have children then.

1st - 5th year 1120€
6th - 10th year 1230€
11th - 30th year 1251€

Total costs 430,000€

I think the installments are manageable. Man earns 1800€ net and woman earns 2400€ net


Variante 2

220,000€ fixed for 30 years at 2.14%
KFW 70 50,000€ (No security after 10 years)
KFW home ownership 50,000€ (No security after 10 years)

Initial installment
1st to 10th year 1170€
11th to 29th year 1312€ (with 5% refinancing of the KFW contracts)
30th to 35th year 230 (will probably be paid off with special repayments)

Total costs: 457,000€

With security through building savings contracts, we would have too high an initial burden :-(

The total costs of this alternative would be lower if we could refinance the remaining KFW debt (75,000) at 2.5%. But what happens in 10 years?

Which repayments do you have for the Kfw loans or how high is the remaining debt. It should be stated in the offer. Basically, there are 2 options: refinance the remaining debt at the current interest rate or try to make special repayments.

Regarding offer 1 and the total costs. Is the deferred taxation excluded? I am not a fan of including Riester and then having to pay the taxes after the 20th year. In my opinion, that is also a remaining debt. It just has a different name.

which repayments do you have for the KfW loans or how high is the outstanding debt? It should be stated in the offer. Basically, there are 2 options: refinance the outstanding debt at the current interest rate or try to make special repayments.

KfW 70 with 2.885% and €36,299 outstanding debt
KfW home ownership with 2.257% and €39,153 outstanding debt
A total of €75,425 outstanding debt, which we would reduce to €70,000 through special payments

Regarding offer 1 and the total costs. Is deferred taxation excluded? I’m not a fan of incorporating Riester and then having to pay taxes after the 20th year. In my eyes, that’s also an outstanding debt, it’s just called differently

Deferred taxation is still added on top of the total costs. At a tax rate of 20%, this should be about €20,000 in total. (But what if the child allowances also have to be taxed??? which are still included here)

However, allowances and tax savings have not yet been calculated.
2 children: 25 * 600 = €15,000
Estimated tax savings €400: 25 * 400 = €10,000
So I would have significantly more savings before retirement than I pay later in taxes. Or am I calculating that wrong? If I pay off the tax liability directly when I retire, I also get an additional 30% savings.

What is of course still missing. The loan term and interest burden are further reduced by the child allowances. But one must not forget that I am very inflexible with a possible house sale due to Wohnriester. (Which is not planned for now anyway ;-) )

These tax calculations are all models, if you already have concrete questions and do not understand it, I would not go into it. But that is my personal opinion

These tax calculations are all models, if you already have specific questions and don’t understand it, I wouldn’t get into it. But that’s my personal opinion

Of course, these are all models. But a rough calculation is possible. I am writing here in the forum precisely BECAUSE I have "no" idea in the hope that someone WITH knowledge can help.