Sounds good to me! I live in Thüringen, perhaps 60 miles or so from this place. Thüringia (the English name) was during that period divided into many dozens of tiny statelets, all more or less independently governed under the vague and rather meaningless supervision of the Holy Roman Empire.
This place is surprisingly historic. The Deutschen Order was historic in itself, but did not have direct rule over very many places in what is now Germany (though it played a huge part in the medieval history of the eastern Baltic area, where once "Prussia", existed).
As you might have read, Liebstadt was on the main trading route from Venice to Denmark in the Middle Ages. It must have been a greatly used stopover point. By the time your ancestors left there though, the Deutschen Orden would have been what it is today, merely a historic footnote and curiosity.