Do bullet loans change experiences?

Hello dear construction financing experts here!

I am wondering if it is actually possible to convert a bullet loan into an annuity loan?
Followed by the question whether such a thing even makes sense?

Does anyone have experience with bullet loans and annuity loans?

Thank you!

Clear answer to all your questions: It depends.

- Conversion from bullet loan to annuity loan
==> It depends on the bank and the price they charge. Basically, the bank refinances itself for the term and calculates without repayment services. Now you come along and want to make a special repayment every month for the remaining term. The damage caused to the bank (if any damage arises at all due to the interest rate structure being old and current or the reinvestment rates) cannot be calculated by anyone for the future. WE therefore do not do such things. So you will have to ask your bank.

Does it make sense? What do you understand by that? That really depends on what you have intended with the bullet loan so far. Is there a repayment substitute or is the loan simply bullet? Were there tax issues? Is a home savings contract included for follow-up financing? Etc.
There may be good reasons to take out a bullet loan (with a repayment substitute). There may also be reasons during the term why one no longer needs the arrangement. Or it was simply crap from the beginning because you fell for a seller and did not sit with an advisor.

Conclusion: Please specify exactly what you want to do, how, and why. Then a concrete answer can be given.

You asked in essence: I’m driving a convertible now. Can I exchange it for a Multivan at the dealer? Does that make sense? Then it becomes clear that there can be many answers to the questions.

It is certainly possible - the question is, what does the bank want in return for it.

Better ask yourself whether an alternative would not be more sensible. Depending on how long the bullet loan has already been running, you may have agreed on a significantly lower interest rate than is possible today.

If that is the case (let's say, <2% p.a.), I would think carefully about whether to switch. Instead, every month put the planned annuity into the portfolio, buying low-risk ETFs with low fees, and with a very high probability (at least for a term >10 years), you will come out ahead because the expected return will be significantly higher than the interest.

For example, an ETF on MSCI World, long-term return, in EUR, annualized >9%

Or alternatively, save with a [Tagesgeld] and every six months convert it into a fixed-term deposit until maturity. Redeeming an ETF at a fixed point in time carries greater risk

That is of course true - risk remains, can't quickly find the max drawdown of the MSCI world, currently have no access to Bloomberg

You don’t need Bloomberg for that, it is often available on the Internet.

The deepest drawdown period lasted for 13 years and 2 months and was between August 2000 and October 2013. It reached a trough of -54.3%.

Of course, one rarely invests at the peak and has to sell at the bottom. But in the 2000s, you could burn your fingers with that strategy.