Please assess the financing conditions

We concluded one of our partial loans with a 20-year fixed interest rate about two years ago at the same interest rate (2.17% effective), however as a full repayment loan with 3.5 to 5.5% amortization (flexibly adjustable monthly) as well as an additional €10,000 per year special repayment possible.

I believe interest rates were even below 2% at some point in the meantime, but I still don't think the conditions are entirely wrong.

With your income (already adjusted for insurance), wouldn't a significantly higher amortization also be conceivable? We have, also adjusted for insurance (disability, private health insurance, accident/home contents/liability/building), about €800 more net monthly income, but amortize with almost double the monthly rate - without really cutting back on consumption (with real restrictions, honestly, even significantly more amortization would probably be possible).

We currently have a similar situation and received an interest rate of 1.99% with 2.5% repayment over 20 years for almost the same amount as you. This offer is currently available at Hypovereinsbank.

However, we are still waiting until tomorrow because another broker said they could beat this rate.

Interesting what just a few weeks between inquiries can make; our offer is also from Hypovereinsbank ;-) Presumably, we would get such conditions again now, I will have that checked.

We took out one of our partial loans with a 20-year fixed interest rate about two years ago at the identical interest rate (2.17 effective), but as a full repayment loan with 3.5 to 5.5% repayment (flexibly adjustable monthly) and an additional €10,000 annual special repayment possible.

I believe interest rates have also been below 2% in the meantime, but I still do not find these conditions unreasonable.

With your income (already adjusted for insurance), wouldn’t a significantly higher repayment be conceivable? We have, also adjusted for insurance (disability, private health, accident/household/liability/building), about €800 more net monthly, but repay with almost double the monthly rate – without really saving on consumption (with serious cutbacks, honestly, much more repayment would probably be possible).

It would be conceivable and we could probably afford it, but we "don’t dare" because children are planned. I have been keeping a very thorough household budget for years and know which items we could also cut. We have a very expensive hobby and like to travel sometimes; this will be less with the house, but we prefer to use the special repayment rather than overextend ourselves or restrict ourselves too much.

Thank you very much for all your assessments; we definitely know that there is still room to improve, but we do not have all that bad conditions as it is.

Interesting what just a few weeks between the inquiries make, our offer is also from Hypovereinsbank ;-)

Is it now about the nominal interest rate or the effective annual interest rate? Aricon writes nominal interest rate but you effective interest rate... then apples are being compared with oranges

Yes and no, as far as I understand the whole matter correctly. Since my offer and probably also Aricon’s offer are pure annuity loans, the nominal and effective interest rates differ only slightly (my offered nominal interest rate is 2.13%, so still 0.14% worse than Aricon’s offer). I provided the effective interest rate (2.17%) to better compare my offer with others, which are not necessarily pure annuity loans. I probably should have given both interest rates directly, sorry for the confusion.

Ah ok. So I find the nominal interest rate quite high but the effective annual interest rate fits again, since there is so little difference

Ah ok. So I find the nominal interest rate quite high, but the effective annual interest rate fits again, since there is so little difference

Why do you find this high? We are talking about a 20-year fixed interest period here, most providers are above 2% nominal interest rate. Or do you have a secret tip for me? ;-)