What to do with the inheritance when there is an existing real estate financing

Hello everyone,

I need your advice regarding our financing in combination with an upcoming inheritance. We built a house last year and, like most here, took out one or several loans for it.
Brief information about our loans:

[*
Annuity loan Ing-Diba
[LIST]
[*]Loan amount: €324,000
[*]Nominal interest rate: 1.4%
[*]Repayment rate: 2%
[*]Fixed interest period: 15 years
[*]Special repayment: max. 5% p.a.
[*]Adjustment of repayment free of charge possible

[*
KFW 153 Energy-efficient construction
[LIST]
[*]Loan amount: €100,000
[*]Nominal interest rate: 1.5%
[*]Repayment rate: 2.8%
[*]Fixed interest period: 20 years
[*]Special repayment: unlimited possible
[*]Repayment grant of €5,000 has already been approved and will be credited to the loan tomorrow

[*
KFW 124 Home ownership program
[LIST]
[*]Loan amount: €32,000
[*]Nominal interest rate: 1.2%
[*]Repayment rate: 3.6%
[*]Fixed interest period: 10 years
[*]Special repayment: Not possible

Information about the house:

[*]Year of construction 2017
[*]Air-water heat pump with integrated ventilation system with heat recovery
[*]Area 143m³

We will probably receive an inheritance of just over €100,000 during the course of the year.

The question I ask myself is: Where to put the money?

Our plan was to obtain an offer for a photovoltaic system and install it on the roof. In my opinion, this makes sense with a heat pump. Then put part of the money (~€10,000 - 15,000) aside as savings. And put the rest into one of the loans.

The question would be, does this plan make sense and into which loan should one put the money? Everything into the KfW 153 or rather repay the Ing-Diba loan bit by bit with special repayments? This would leave us with the highest residual debt.

I hope you can give me tips. Of course, I will also approach our advisor who arranged this financing with us....

kfw 153 completely gone, because it is the most expensive loan. add the freed-up repayment capacity to ing

That was also my first impulse, but the fixed interest period is significantly shorter. Maybe fire up Excel and play through both options with total costs, and you’ll just have to estimate the interest rate risk. Or mentally reverse the situation: you already have the money but are still facing the construction. Which option would you choose? You can leave the repayment grant out of the consideration and add it to your equity capital, since you have it now – regardless of what you decide to do now.

Morning,

I would also choose like Alex. Alternatively, I am happy to send you my bank details.

Olli

I agree with Alex as well. You can then put significantly more into the [Ing-Diba Kredit] once the [kfw153er] is gone, thus reducing it considerably until the end of the loan term. You have many options with special repayments and adjusting the repayment rate.

: Let me think about it for a moment......uhhh No! ;-)

As I wrote, I also tend towards the kfW 153....which then leads to a chain reaction. If the 153er is then dropped, we will have more money left each month, which can in turn flow into special repayment of the large loan (if you use that consistently).

What do you think about the idea with the photovoltaic system?