Question about construction financing

Good day,
I had a conversation yesterday with my financial advisor at BHW.
It concerns a loan amount of 130000€.
Since we have no equity, it will be a full financing over 35 years.

The monthly rate should be about 620Euro.
When I thought about it this morning and did the math, I realized that over 35 years this would amount to 260000€. After a call with the financial advisor, this is completely normal, that the amount is so high for financing over so many years. Can anyone confirm this?

I am actually not bad at math, but somehow I can't quite understand it.

Thank you very much in advance.

Regards
Patrick

Interest rate?
Repayment rate?

Theoretically, that is possible.

The question first would be what kind of loan it is? [Annuitätendarlehen]? Or a pre-financed [Bausparer], which is refinanced after a certain period? Or something else or a combination?

Then the question about the effective interest rate/repayment rate? Is the interest rate fixed for the entire term? Otherwise, it would only be an approximate value.

I can hardly imagine a pure [Annuitätendarlehen] after recalculating (if I didn’t miscalculate), because to get to those numbers, it would have to be an absolutely terrible interest rate of about 4.5% by today’s standards.

Maybe you can write something more about that.

With a loan amount of 130 TEUR and a monthly payment of about 650 euros, the loan is paid off after approximately 20 years. I have assumed 2% interest and 4% repayment. The interest costs are about 30 TEUR.

Even with 3% interest and only 3% repayment, you will be finished after 24 years. However, interest costs then amount to 50 TEUR.

At 3% interest and 2% repayment (monthly payment then 540 euros), you will be finished after 30 years. Interest costs then 70 TEUR.

The offer you have is terrible! Sorry.

Unfortunately, I do not have any interest rates or anything else. He roughly calculated everything first because we were there without an appointment and our actual advisor is no longer there. I only know that the fixed interest rate period is 10 years.

I do not have a home savings contract or any other funds.

So roughly, we cannot assess it. You should get the offer along with the [tilgungsplan]. 35 years sounds like a full repayment with 1,x % repayment.