Debt restructuring - Conditions - Forward loan

Hi actually the last payment was 08/15 and therefore it is 02/26.

Installment planned around 0.7K EUR for the main loan.
It doesn't bother me that after 10 years there are still a few tens of thousands left. I will pay off those few bucks even if the interest rates are at 7%. Provided the income does not change drastically, then during the term we would have to adjust the installment downwards and continue refinancing... but painting the devil on the wall doesn't help either :)

Honestly... I completed my forward in 2017. The conditions are roughly the same as your main loan. For me, it was important to have planning certainty and, of course, to keep the costs manageable. I now have 1.6%, which corresponds to only around €125 interest per month in the first year. In 2010, however, it was almost €800 interest.

I feel very comfortable with this, even though— as of today, without having purchased the forward back then—I would probably pay €60 less per month. What I want to say is: detach yourself from the interest rate and look at the absolute numbers.

If you can already repay the KFW loans and thus free up money, I would invest that maximally in repaying the main loan. Possibly you won’t need the forward in 2026 anymore.

Consideration: restructure the two KFW loans with minimal repayment and extend them, for example, to 15 years. Maximum special repayments into the main loan and thereby reduce/shorten the forward for the main loan. Maximize the rate for the main loan and then, for example, only have a 5-year follow-up financing for this part.

You have €1500 as a rate to distribute...
The €400 in the first loan could already bring around €3,500 in special repayments for the main loan if you minimize the rate there.

Honestly... I completed my forward in 2017. The conditions are roughly the same as for your main loan. For me, it was important to have planning security and of course to keep the costs manageable. I now have 1.6% on it, which in the first year corresponds to only about €125 in interest per month. In 2010, however, it was almost €800 in interest.

I feel very comfortable with it, even if - as of today, without having bought the forward back then - I would probably pay €60 less per month. What I want to say: detach yourself from the interest rate and look at the absolute numbers.

If you can already repay the KFW loans and free up money, I would invest that maximally in repaying the main loan. Maybe you won’t even need the forward for 2026 anymore.

Consideration: refinance the two KFW loans with minimal repayment and go for, e.g., 15 years. Maximize special repayments into the main loan and thus reduce/shorten the forward for the main loan. Maximize the rate for the main loan and then have, for example, only a 5-year follow-up financing for this part.

You have €1500 as a rate to distribute... The €400 in the first loan could already bring around €3,500 in special repayment for the main loan if you minimize the rate there.

Very nicely put. A forward is a kind of bet. You never get the cheapest interest rate anyway. I even go further. We did a forward, slightly increased the rate because we got used to it. Advantages: full repayment! I’ll be done in 8 years instead of 16. And never again special repayment. That annoyed us every year to pay €4000 in spring. It was voluntary but planned.

Very well formulated. A forward is a kind of bet. You never get the cheapest interest rate anyway. I even go further. We made a forward, slightly increased the rate because we got used to it. Advantages: full repayment! I’ll be done in 8 years instead of 16. And never again special repayments. That annoyed us to pay 4000€ every spring. It was voluntary but planned.

I have to solve the early termination via special repayments because I couldn’t agree on more than 5% regular repayment. 5% special repayment is still possible per year and will probably be used. Good times for refinancing.

Of course, you are right! The main loan currently has a pretty high interest rate of 3.7% :( This year I will make €8700 and over the next few years additional €8700 special repayments to get the loan down to €95,000! My plan is, as soon as KFW is finished, to get myself a new car from leasing again. As soon as the monthly burden becomes lower, that’s pretty cool and gives a good feeling :). I didn’t really want to plan longer than 20 years, to put that daily driving strain on my car. But maybe I’ll keep it anyway... we’ll see, it’s beautiful :D

We also had 2 x KfW + 1 main loan and are now combining them with a forward for next year. However, they will then only be a total of €116,000 and we were even able to get a 10% special repayment and only 0.56% interest. So, we will be done after 5 years :)

So it doesn't always have to be KfW. With these interest rates, you can hardly go wrong anyway.