Well, I pay one percent less interest with a 10-year fixed interest period. I don’t think it makes sense to commit for 25 years and accordingly pay significantly higher interest at the beginning.
The house connection costs and interior work are missing? Then another 30-50,000 euros will be added on, I hope you have also considered these in the financial plan...
Regarding paying less:
Certainly, it is cheaper to initially have a loan with a fixed interest period of only 10 years on both loans, but the question arises what will happen to the interest rate?
I cannot imagine that the interest rate will remain at the currently low level over the next 10 years.
For me, therefore, the 25-year commitment is a security in the financing, especially since I also protect myself against operational dismissal, etc. within it.
That is why it is a long-term secure component in the financing, and with the 10-year loan a component with interest rate risk at favorable conditions, which I will reduce with special repayments.
The
interior work that is missing, as already mentioned, is only the painting/wallpapering and laying some laminate in a few rooms, total costs about 4000€ for materials.
Plaster, etc., is all included in the purchase price of the house.
The supply connection costs amount to a maximum of 5000€.
Otherwise, everything is fixed and finished.
All other incidental costs such as property transfer tax are already paid.
The only thing left is later the surveying/checking of the house position by the authorities.
Basically, it was only about the financing for me; everything is affordable with it, even a buffer is included in the financing.
There is also capital available for emergencies.