Should I finalize construction financing now or wait, experiences?

Yes, okay. I just did the calculations. With the 20-year plan, the remaining debt is still 323,470 and it costs 285,870 in interest. Still not even half paid off.

And with the 30-year plan, 164,471 would remain, and that costs up to 398,671 euros in interest. Then you go into retirement with such a burden. Well, to each their own.

I would never enter into such a dubious construction financing with such a low repayment rate. After 20 years, you will have repaid only 35%, and with the 30-year one only 45%! Have you even calculated how much interest you will pay? For me, it is unbelievable that banks offer something like this.

In this scenario, the calculated term is 35 years. Just so you know. With special repayments, of course, it finishes much earlier.

And then rather 20 or 30 years?

Oh yes, I didn't even answer that. If security is extremely important to you, choose the 30 years. Then, with a little extra repayment, you will be done after 30 years and have no interest rate risk.

Loan: 628,000€

Current offer:
2.95% nominal interest rate
20 years fixed interest period
1.75% repayment
approx. €2460 installment
12 months interest-free provision, then 2.4%
5.0% special repayment possible per year

I have just received a similar commitment, but I will not take it because the interest rate is currently falling again. Since Friday, I have had an offer of 2.7% with 24 months provision-free. The "saved" interest will be put into repayment by me, as it was rightly said here that a low interest rate has the effect that the residual debt (in the case of 1-2% repayment) is still quite high after the end of the fixed interest period (10/15/20 years).

If you do not have to conclude financing immediately, better wait a little longer.

If you do not have to finalize financing immediately, better wait a little longer.

At the beginning of last week, rates went slightly down. However, on Friday, they went significantly up again. Currently, there is no up or down. It is moving sideways and 0.10% more or less is practically stable. There are no indications of further falling interest rates. But also none of rising rates. In the USA, rates are rather rising again due to Trump and his plans. Who knows, maybe that will spill over? Inflation in the EU is currently also not pointing towards further falling rates. But everything can change quickly again.

I would never conclude such a dubious construction financing with such a low repayment at all. After 20 years, you will have repaid only 35%, and with the 30-year term only 45%! Have you ever calculated how much interest you pay there? To me, it is incredible that banks offer such things.

Have you ever dealt with such loans? The repayment rates are initial repayment rates. With a constant rate, the repayment amount increases a little with each monthly payment, since the debt decreases with each payment.

I also consider the repayment rate too low.

Loan: 628,000

However, the loan is very high. To ultimately assess something, one would have to put the income into relation. And then one could possibly ask why the repayment is planned so low. Because let's be honest: you first have to have the 5% special repayment to be able to use it. Because a 13th or even 14th salary in a house usually goes to other things than special repayment.