Outstanding Debt Protection in 15 Years

When it comes to financing, I wonder who sold that to you!? But well, probably nothing can be changed anymore.
Best regards
Dirk Grafe

Hi dirkg,

What is so wrong with financing at an effective interest rate of 1.34% and 2% repayment with a fixed interest period of 15 years, except that no special repayments are allowed?

Hi dirkg,

What is wrong with a financing at 1.34% effective interest rate and 2% repayment with an interest rate lock of 15 years, except that no special repayments are allowed?

again, the very low 2% repayment. Saving up only helps that much if you consistently do not touch the money. Very few can manage that.

Hi "hilfehilfe", I would like to read the argumentation of the "moderator". Therefore, I contacted him directly again. I think if you moderate a forum of this size, when you talk about being "talked into" something, you should be able to justify this factually. The 2% are, as already described several times, fixed because it is a promotional loan for families with children. Of course, 3-4% would have been nicer, but that would only have been possible in connection with a higher interest rate through a "normal" annuity loan. And that would have been higher in the overall cost consideration – of course taking into account that money is simultaneously being saved. Whether most people can do that or not does not interest me and does not influence my own saving behavior.

Hi "hilfehilfe", I would like to read the argumentation of the "moderator". Therefore, I contacted him directly again. I think if you moderate a forum of this size, when you talk about something being "pushed on" you should also be able to justify it factually. The 2% are, as described several times, fixed because it is a subsidized loan for families with children. Of course, 3-4% would have been nicer, but that would only have been possible in connection with a higher interest rate through a "normal" annuity loan. And that would have resulted in higher overall costs – of course considering that money is also being saved at the same time. Whether most people can do that or not doesn't interest me and doesn’t affect my own saving behavior.

I can completely understand if the word "pushed on" gets under your skin. You certainly thought about it beforehand or are also thinking about the refinancing afterwards. So from your perspective, you probably made the right decision. 0.75 over 10 years is also very attractive for that amount. It is also clear that such products always have a disadvantage. Here, it is the limited repayment option.

In retrospect, I wouldn’t overdramatize it either because you cannot get out of the construct and it also offers advantages. Regarding saving, I made a suggestion. Personally, I like it when the money is "gone", I cannot access it. Anything that is quickly liquid will certainly not be for you. I’m not a fan of building society contracts, but certainly worth considering. I would even bring a residential Riester into play. But I’m not familiar with it. We have a "normal" Riester.

I don't see the construct with the L-Bank as that dramatic, as long as something is additionally set aside somewhere. The interest rate is great, so why not.

In total, however, this should amount to at least 5% including the installment. That would mean about €540 monthly additionally. Your plan with €500 is therefore rather the lower limit.

A well-interesting daily allowance brings interest >0.75%. A fixed deposit even more. So why pay off more when the deposit interest is higher than the construction loan interest? You just have to be consistent in setting it aside.

With the home savings contract, I see the problem that then the rate jumps by €300. If I've calculated correctly, you pay until then an installment of €657 + €500 into the home savings contract. After 15 years you want to suddenly go to €1433. Or does the annuity already increase after 10 years with the jump to 2% interest?

Hello, I would save the free money over the next 10 years in a [Tagesgeld] or [Festgeld] account. After 10 years, you can pay off the loan completely (if the interest rate of an alternative product <2%) or make a partial repayment and apply the saved money. This should bring you significant relief in the phase with 2% interest. After 15 years, your remaining debt will be lower, and you can also directly repay part of it with your savings.