Combination Loan BSS vs. Annuity Loan

All information naturally without guarantee: But in principle, I plan with the KfW funding over the longest term and without special repayments, as the interest rate here is 1.3% with a term of 20 years. (without mortgage etc. unbeatable) I don't think much of building savings contracts; they are like small insurances. Basically, it's about the commission here. The interest rate will not rise again so quickly, and it can't fall much further either. Therefore, I tend towards an annuity loan with special repayment options and a long term. Monthly, interest and repayment should not take away my breath & 5% repayment is now normal. After 10 years, I can redeem the loan from the bank (if I win the lottery, for example ) without prepayment penalties. Another financing component would be the KfW program 124 for owner-occupied homes & in Bavaria the 10,000 houses program. As a thought-provoking idea! The British paid no repayment at all for years.

Yes, you are right. We have to keep that in mind when looking at the overall picture – at the beginning, you could possibly first make use of the interest-only years that the KfW offers and during this period essentially minimize the sum through special repayments (hopefully massively) until the regular repayment starts.

Don’t forget, with 20/20, only 3 years interest-only are possible.

Also, special repayments would not change the repayment rate, only the time would be shortened.

That would mean after the 3 years you would have 546 EUR for the KfW per month.
If you choose only 1 year interest-only, 495.23 EUR for KfW per month.

I would do the following:

[*]KfW 20/20 (3 years interest-only) (1.3% interest)
[*]And the annuity loan with 3% repayment, meaning 1096 EUR monthly

That means the first 3 years 1204 EUR burden. Then 1642 EUR monthly.
That would fit your planning.

[*]I would set aside the payments for special repayments as well as the difference to your desired rate in the first 1/2 years (so far, far away on a savings account). Afterwards, put it into the annuity loan. The KfW is fixed anyway, and will be gone after 20 years.

WORST CASE:
Theoretically, if you make no special repayments, you will still have 136,000 outstanding on the annuity loan after 15 years.

If you actually manage to make 5,000 special repayments each year, it would only be 53,000.
If you actually manage to make 8,200 special repayments each year, it would be only 0.0

It basically depends on your discipline with special repayments.