>Due to the OP using the € I think they aren't playing by US rules at all.

Yes, I am a silly American and did miss that, thanks for catching and good explanation.

I am a bit horrified by how bad this sounds though. If u/TenDogsInATrenchcoat were to take this loan and try to sell their house before 38 years they would instantly owe six figures on top of the principle and be completely screwed, right?

Is it fair to say that this is a bad deal by European standards as well and OP should flip their lender the middle finger and do something else then?

Ah, that's possible, how silly of me to miss that Euro symbol. I think most of this sub defaults to assuming "American financial regulations" unless otherwise specified.

Just logically that seems like a horrible idea though. If you sell your house before the 38 years are up you are automatically deep underwater because you will instantly owe six figures on top of whatever is not paid off yet.

Right?

Seems crazy to me.

>If you decide to pay back early, you still have to pay 38 years worth of interest.

This part is weird and not normal. Are you sure you read the terms of the loan right? Even for 'predatory' loans I have not heard of this before.

Edit: I am not a mortgage lender so its possible loans like these do exist and I don't know about them. But at a minimum I am confident that this is not the norm.

Edit 2: Apparently is legal in at least some parts of Europe. Y'all be wild in what you are letting lenders do. 😜