We financed it so that we are done after the fixed interest period with an annual special repayment of €5,000 – for that, we consciously chose a lower monthly rate. We could put up to €28,000 annually into the special repayments, we have to repay at least €1,250 specially. So if we suddenly come into great wealth, we can repay quickly and the minimum is always manageable. But this way we feel comfortable. There is enough left for living expenses. Now a car has broken down on us – that was not planned, the thing was supposed to last at least another year – but we can still absorb that well and that’s good.
The first one to three years in a new house are usually still quite costly. Landscaping, furniture, etc., all that still adds up. But then it will probably relax. I will retire in 12 years, the financing will run much longer (my dear husband is younger *g*) – if we manage to put so much special repayment upfront into the financing that the years of paying off after I retire are shorter, then that’s nice. If not, it won’t kill us either.
Luckily, we didn’t have to give the shirt off our backs for the financing, and I wouldn’t advise anyone to do that either. We still live quite well, we will probably forgo a bigger vacation again this year, but for that, we are doing our landscaping. We can afford small pleasures in life, concerts, eating out occasionally, spontaneous three-day trips to Lake Garda or something – that works well without us having to cut back. The big diving vacation in Southeast Asia will probably be back on the list in two or three years. But I wouldn’t want to constantly restrict myself for it in everyday life.
So: special repayments and a little consumption – oh yes: at the moment we are also putting aside a few hundred euros monthly, so saving as well.