This is a fascinating question.
What kind of terms the Germans would be willing to accept would depend on just how bad the Wehrmacht has been hit and what else is going on - just how restless is Stalin looking is a big one. On the other hand the Allies would have to give off the impression that they are willing - and able, this is a big one - if necessary, to do it the hard way and march all the way to Berlin and make the Germans cry uncle.
The memory of Versailles and the Dolchstoß-legend would IMO make any German leadership pretty disinclined to make territorial concessions without actual Allied boots on German soil and German military and industrial warmaking assets in ashes - it would be political suicide to throw away the spoils of the victory in the East without strong war-weariness in the general populace. They would try to keep Austria, Sudetenland and Danzig, keeping the parts of Schlesien and Posen lost in WW1 is out of the question. While losing the best assets of the Wehrmacht to that bombardment would certainly go a long way towards disenchanting the Germans from the war that they really only got into after the unexpectedly easy victory over France, I really don't see the war end in 1940 quite frankly. The Allies would be absolutely disinclined to accept a Germany that is stronger and larger than in 1937, and it is politically impossible for the Germans to just give up their gains. So the war will have to go on until war-weariness has mounted to a point where one side or both sides have to give up some of their demands.
On the other hand you gotta keep in mind that Germany is gonna lose this one, no doubt about it. And the new leadership knows that. They are going to run out of raw materials and food even faster than in the original timeline since they have captured only a fraction of the gold, weapons and raw materials they got their hands on in the original timeline and they are not going to get any new allies after this loss of prestige and great-power-credibility. They would probably attempt to delay the Allies for as long as possible and then go for a desperate, Battle-of-the-Bulge-like push to get the Allies to agree to the status quo ante of August 1939, but it's not happening.
This is gonna end in a civil war in Germany, with the Soviets and Allies moving into the vacuum and waging war over the spoils. How the postwar borders look like depends on how much German army is left to help the Allies when the Soviets decide to make their move. If the Germans are really depleted when the Soviets move, and/or Americans don't move quickly I actually see the Soviets on the Rhine or even the Atlantic in this one.