Question about our financing offer

@toxi: Unfortunately, the 22 years don’t work because the payout of the loan would be on 01.10., but the expiry of the insurance is 01.12.. ;-)

I don’t know if the banks would say 2 months longer would be no problem. So 22 years and 2 months.

My consideration is:

Part 1 - Take KfW 50,000 for 10 years at 1.25%. Get it paid off within the 10 years either by installments or special repayments.

Part 2 - 250,000 with 23 years fixed interest, probably at 1.8% effective.

The rate should remain at 900-950 €.

Part 2 - should then run for 10 years with less repayment, after paying off KfW the rate should be adjusted to 900-950. Maybe more would be possible with salary increases, wife full-time, etc., if not also fine.

Overall, the rate should always stay the same.

That way, I should still get a bit better off with the interest, or am I mistaken?

Hello, if there is an existing LV then great! Are you calculating the buyout with guaranteed values? Due to the Kfw share, this financing is better. However, you wanted a constant rate. That means you have to make sure to save the remaining debt of the Kfw share within the 10 years in parallel. The first proposal now speaks in favor of this. That takes the "pressure" off.

Sorry for answering only now. Yes, the calculation of the KLV is based on the guaranteed values.

So with KFW it unfortunately does not get cheaper, the interest rate is increased with KFW so that it can be ignored. With KFW I then get an effective interest rate of 1.73 instead of a fixed 1.74. However, after 10 years I would have to pay off a remaining amount with KFW.

I have now rather decided on the normal option. There was nothing cheaper on the market either.