Question about our financing offer

Hello,

I wanted to ask if you could give me any tips or suggestions on how to structure my financing to maybe save some interest. ;-)

Our offer is as follows:

Financing proposal 1:
Insurance (annuity loan)
Nominal/Effective - 1.72% / 1.74%
Repayment: 2%
Loan amount: 300,000
Fixed interest period: 23 years
Special repayment: 5% p.a.
Outstanding debt: 130,000
Monthly rate: 930 €

The outstanding debt can be reduced to 30,000 after 22 years with the maturity of a life insurance policy.

For me, it looks manageable—the rate of 930 € + LV 190 € per month.

I wanted to ask if someone can tell me if it makes sense to split the loan into different years and maturities somehow.

Because I have read many other examples here.

It would be nice if someone could help me.

Thanks

Hello,

apparently you are a (young) banker. So how do you come to such a financing with LV? Do you know the disadvantages of a capital life insurance? Not to mention the interest?

If you put the 190 € into the repayment over 23 years, you alone have a low remaining debt of 53k + compound interest.

It is basically assumed that the guaranteed payout with a capital investment of 53k amounts to 100k.

I don’t believe it.

Why choose an interest rate lock-in of 23 years when there is a special repayment option after 22 years?

Splitting it further only makes sense if subsidized funding such as [Kfw] is to be used. Otherwise, such a thing is rather pointless.

In itself, this looks like a fairly low-risk plan.

And if you somehow manage to make an additional special repayment of 1,000 euros each year, you will be completely debt-free by the end of the interest rate period.

But if you take out the capital life insurance specifically for the financing (or are supposed to take it out), then it would be better to recalculate, take out a risk life insurance (if desired), and use the freed-up money directly for repayment.

In the case of the irregular fixed interest period, I assume that it is an existing KLV. Then the consideration is not bad, since the KLV premium has to be paid anyway and at the same time there is death coverage that does not need to be purchased additionally.

Hello, thank you for the help.

The KLV has existed since 2004, it is not concluded specifically because of this.