Which credit model - 15 or 20 years?

Ultimately, 20 years are worthwhile if after 15 years the higher interest paid (20-year model) and the outstanding remaining repayment amount correspond to the value that can be obtained through saving in 15 years. Unfortunately, the average savings interest rate over the 15 years must then be about 2% above the fixed loan interest rate, and that is very unlikely from today's perspective. It is all theoretical anyway. Considering the difference, the model over 20 years is almost 33% more expensive compared to 15 years. Clearly, the factor of calmer repayment plays a role, although I have no qualms about either option; the only thing is that the spending situation can of course change, and then we are somewhat better/more flexible with 20 years. This week, we are going to the bank again, where all costs will be recalculated with the latest interest rates. Maybe there are other models that could be an option for us. Then it might of course no longer make sense to choose the 15 years. :)

Since you are able to pay off the loan fully in 15 years (33% of the net income), it could be an option to choose only a 10-year fixed interest period and then refinance the remaining debt or possibly secure this part with a building savings contract. Something like this could exceptionally make sense here. Disadvantage: Higher burden due to additional monthly payment.

Also, an interest rate increase in the last 5 years probably would not hurt you, especially when you factor in the interest savings again here. But this only applies if you can/want to sleep with a certain residual risk. For someone betting on rising interest rates, this is nothing, or only makes sense in combination with a building savings contract.

The thing about the 2% return on the savings side doesn't make sense to me. I believe the return has to be significantly higher, but that's just a gut feeling. Maybe I'll calculate that later for Mr. X to see if that's true.

And regarding the 33% more expensive... in my opinion, that's exaggerated. Unfortunately, I deleted the calculation from this morning again. But I think it was "only" just under 30% more cost in the first 15 years.

And you believe that these "non-subcompacts" are private vehicles? I don’t know your residential area, but I would still bet that 8-9 out of 10 vehicles (C-Class/A4/Mondeo/Omega or larger) are company cars. Those who can afford a private sports car are not to be considered anyway, as they probably belong to the 10% at the top end of the salary scale).

This phenomenon occurs especially when you are just outside a big city. There, the aforementioned vehicles always have the license plates of the company headquarters.

No idea. That may apply to C-Class/A4/Mondeo/Omega. Here, however, there are more A6, 5 Series, E-Class and then something nice like an A5 or a sporty car. As I said...we are probably at the lower income boundary here. We drive an expensive car ourselves, but in this case actually a commercial lease vehicle and without a second car.

Regards, Steffen

And just as it is with your car, it is the same with almost all vehicles. In the lower middle class, about 70%, in the upper middle class 80%, and in the luxury class 90% are purchased as company cars.

Ha also counts a BMW X5, S6, or Porsche Panamera.

PS: The return on savings would need to have a clear 3 before the decimal point to cover the additional costs (approximately 3.3%). This is currently simply not possible.

So, had the conversation with the bank to secure the interest rates this month and to be able to think it over calmly. We were able to agree with the bank on a good period. Full repayment in 18 years. I think it’s a good compromise to keep the burden manageable for us while still being able to save for special repayments with some flexibility for unforeseen events. Thanks for the tip to discuss other options. What puzzled me, and I didn’t know this before, is that the bank required a medical examination at the next appointment for the loan application :confused: (blood test, cardio checkup...), to know if we are healthy. Is this common? It’s about the insurance, and being in our mid-thirties, I thought we’re not that old.o_O:) Cheers