Please evaluate the financing offer

Well, with 35 instead of 15 years, you just pay a higher interest rate – and from the very beginning on the full loan amount. If the difference between 15 and 35 years fixed interest is only one percent, that would be about 4000 euros in additional interest costs in the first year alone on a 400,000 EUR loan amount. You can calculate for yourself what this form of interest rate protection adds up to in total... :)

Hello moskito,

please write down the target interest rates as well as the repayment rates for the loans for better assessment.

Thank you!

Best regards André

Hello,

you are lucky, I work in new business at a real estate financier.

1. with the currently low interest rates, choose the longest possible term (banks usually offer up to 20 years, some insurance companies 30 years) the interest rate is initially higher than for short terms, but the interest rate change risk does not exist.

This is very important in your case because you are financing a large amount.

2. I generally advise against building society savings contracts, there are many hidden costs such as a 1% contract fee of the savings sum, an annual account management fee, and a land charge registration is also required, which also incurs additional costs.

I would definitely take the KfW loans and have the first 5 years interest-only payments there. Do not make any special repayments there either. Have a look at the 153 loan, the interest rate is below the inflation rate, it doesn't get better than that. For the main financing, I would either agree on a high repayment rate (which you then do not have for the first 5 years with the KfW) and then only make special repayments there, because this reduces the interest burden and increases the repayment portion.

With the KfW interest rate and the loan interest rate there is still some room for improvement, which provider do you have? I recommend Interhyp. Interhyp searches from about 100 banks for the cheapest one to suit your needs.

Hello everyone, thank you very much for the constructive contributions :)

After the note about the overall significantly higher total interest burden in the context of the 35-year fixed interest period, we have now requested further offers with an interest fixation of 20 years; a shorter period is definitely too risky for us, our considerations exactly match those of stonan. We had not thought of the idea with the non-repayment start years of the KfW portions until now, but find it very interesting at first glance! Especially since the total sum of 100,000 euros with these two loans should still be somewhat repayable even with a significant interest increase after 10 years, and in the first years, of course, as mentioned, we could repay the more expensive main loan faster. We will calculate that in detail right away! Does anyone see a catch???

The nominal interest rates are as follows:

Main loan (296,000 euros) -> nominal interest rate 3.87%, repayment rate 1.43%
Component 2 (KfW 153, 50,000 E) -> nominal interest rate 1.9%, repayment rate 2.59%
Component 3 (KFW 124, 50,000 E) -> nominal interest rate 2.75%, repayment rate 1.78%

Best regards,
moskito

Since the loan-to-value ratio is so poor, the interest rates are reasonable. Please note that with the 5 repayment-free initial years, I will increase the repayment for the KFW loans afterwards. They are always structured so that they are completed within 30 years.

Which federal state are you from again? In some federal states, there are subordinated promotional loans, for example through [die Investitionsbank]. This improves the loan-to-value ratio of the first-ranking loan since it then involves a different lender. A better ratio also means better interest rates.

Hello Moskito,

we are also taking the L-Bank loan (we are building in BaWü, so this is possible) and leaving it interest-only for the first 5 years. We use this time to fill the existing home savings contract so that, after the 10-year fixed interest period, we can, if necessary, refinance the loan at a favorable interest rate. If the interest rate is then cheaper, we can still use the paid-in money for a special repayment of the main loan. As I said, we had a home savings contract. So if you have an existing home savings contract, you might consider whether this option makes sense for you.

The loans are registered as subordinate, but the risk is still borne by the financing bank. Therefore, there was no change in the interest rate for us. (at least that was the statement with our financing)

Best regards