Own home: interest rate development / interest rate / interest rate increase / conditions

Small addendum, what is still interesting for the interest rate development, as the thread is also called.

The KfW is discontinuing the KfW70 in program 153 (Energy-efficient building) as of 01.04.'2016.
That means you can only apply for KfW 55 or better in the KfW program 153.

I noticed this yesterday...

Regards

That makes sense, because from 2016 onwards KFW70 almost corresponds to the basic requirements of the Energy Saving Ordinance and the funding program is called "energieeffizient...". Just meeting the minimum standard is not very efficient but "only" standard.

I'm curious whether the credit repayment disaster will really affect many people in 10-15 years. For example, we couldn't conclude a contract with less than 3% repayment at Sparda-Bank – the Ing-Diba also advised us to do so. Similarly, many still have 5 years to strategize, and if I read this here, most people have signed contracts for 35 years or even longer anyway.

It can't be done any other way. I see the incomes in my environment. Couples together earn between approximately 3000-4500 € net! House prices with land are between 300-500k €. Equity, if any, is around 5-10 %. You can calculate how long the financing will have to last.

And with those incomes, it is almost always two people with a university degree, at least a bachelor’s.

That tempts people to finance despite the low interest rates and to overlook the increased land/property prices.

I'm curious whether many will really be affected by the credit redemption disaster in 10-15 years. For example, we couldn't agree on less than 3% repayment at Sparda-Bank - ING-Diba also recommended that to us. Likewise, many still have 5 years to maneuver, and from what I read here, most have contracts for 35 years or even longer

I already wrote this in another thread: We officially financed last year with only 1% repayment (or state loans with 1.5% and KfW at about 4%). However, we explained that we would set aside the difference up to 6% annuity and then pay it off with special repayments. The bank accepted that as well. Sparda-Bank would have accepted it – MüHyp then did it this way.

The money set aside is simply meant to serve as a safeguard in case something unforeseen happens. Then this special payment would have to be suspended with the aim of catching up the following year.

So officially, we have a term for 140,000 EUR MüHyp of > 40 years. If we carry it out as planned (KfW should also be fully redeemed after 10 years, for example, using the balance of an expiring building savings contract), the term results in about 23 years.

I'm curious whether the credit payoff disaster will really affect many people in 10-15 years. For example, we couldn't conclude anything below 3% repayment with Sparda-Bank – ING-DiBa also advised us accordingly. Likewise, many then have another 5 years to maneuver, and from what I read here most people have anyway signed for 35 years or even more

I wouldn't even commit to 10-15 years, even if the interest rate is tempting. Solid is, as the building finance advisors also suggest, to fix interest rates for 20 years and 3% repayment.

There’s no other way. I see the incomes in my environment. Couples together between 3000-4500 € net approx.! House prices including land between 300 -500k €. Equity, if at all, around 5-10%. You can calculate how long the financing has to last.

And with these earnings, it’s almost always 2 fully educated people, at least bachelors.

That tempts people to finance despite the low interest rate and to overlook the increased land/property prices

Yes, as described above, the term can then also be 25-30 years. I find 3000-4500 euros for a couple okay, it depends on how many children there are. But one should clearly see, most alone don’t earn 58,000 gross per year, together (couple) maybe between 60,000 - 70,000; that is the norm.