Property reserved. Financing is pending

Let me put it this way: if you get 1.4% for 15 years, with €300K - assuming you pay off €150K of it in those 15 years - you pay €47K interest. If you play the same scenario with 25 years and 1.8%, you pay €60K interest (for the first 15 years). The remaining debt would then be €137K in the first case (you repay extra with the savings) and €150K in the other. In the follow-up financing, you can now calculate what the break-even interest rate would be (after the fixed term) for which the first or second scenario would be worthwhile. In this case, ~4.8%. From there on, it’s crystal ball gazing ;)

And without concrete (and comparable) offers, the calculations are useless anyway.

What kind of statement is that? Scenarios are decision aids in situations of uncertainty. That has nothing to do with offers at first.

I think scenarios are great if they were to come true. When it comes to building a house, however, it’s a different matter. In order for the savings to become an extra repayment, the saved money must actually be set aside. Now, after the money runs out, there is still so much to do on the house that this calculated wishful thinking will very rarely become reality.

In general, I would say that with a tight budget, calculation certainty exists over a very large part of the financing. If money is no object, then you can tinker a little. If the financing is more tight around the waist, then it gets narrower. Here, very long fixed-interest periods come into play, which may even cover the entire term to a large extent, at least allowing enough repayment so that a decent interest rate increase after, for example, 20 / 25 years should not break your neck.

The borrower is bound anyway only for 10 years and can then terminate with six months’ notice.

Security lets most people sleep well. ;-)

So honestly, we don't have unlimited financial resources! That means we spend about 1/3 of our income on the house, especially as long as my wife doesn't earn more than 120€. I also considered fixing the financing for 30 years so that we could save more each month and also set aside money for vacations.... An amount of 240-250,000€ is also quite a sum.... I think I wouldn't dare to continue financing 125,000€ after 15 years, as BeHaElJa suggested, without interest rate security!! There may also be additional unforeseen costs with the architect-designed house..... Oh... These decisions really aren't easy.... :(

Basically, these are simple decisions. If you are more security-oriented (like me), then over the years you can live much better with a fixed rate that no one can take away from you. On the other hand, you don't have to worry about unexpected money increases because after 10 years you can basically pay it back if you want.

I want to know what I have to pay. Period. I don't want to gamble. I don't want a situation for myself where after 10 years I realize that I was wrong, even if the calculation was mathematically correct.

Interest rates are as low as NEVER BEFORE. What else do you need to know? ;-)