Extra repayment or saving with a home savings contract? Specific case:

Hello , sorry to follow up again and address you directly, but I really enjoy reading your posts here, so I take it as a compliment.

Can you confirm or add to the helpful explanations from guckuck? Thanks!!

Hi, I quickly calculated this. Assuming that 100% was paid out on 1.10.2017 and with a Nominalzins of 1.63%, you would have an outstanding debt of: 350,447 as of 30.04.2020. The Gesamtzinsen - if nothing ever changes (rate, interest rate) - would be 121,349€, with the last payment on 30.04.2054. If you make a special repayment of 18,500€ today, the total interest burden is reduced by more than 13,000€ to 108,245€, with the last payment on 30.12.2051. Since 5% special repayment per calendar year is common, this could be done entirely without VfE. I think this is so favorable that it’s worth it.

If you make further repayments of 18,500€ each on 15.10.2021 and 15.01.2022, the interest savings would already be around 35,000€. The last payment would then be on 30.80.2047.

(All calculations assume that the interest rate remains unchanged until the end of the term. If you want me to calculate with different interest rates: gladly.)

Thanks for your feedback, that encourages me. The fact that no other expert has contradicted this so far additionally shows that...

Would you please explain this to me briefly:


I can already conclude a forward loan in 2.5 years? One would assume that the interest rates will be at a similar level until then...?! Then you actually wouldn't need the building savings contract anymore, or what do you mean by "decide over fate"?
In other words, every forward < 2.0% improves the starting position for the year 2027, right?
Are there any disadvantages to this?

The earlier you conclude a forward loan, the higher the surcharge on the current interest rate. Assume about 0.5 percentage points per year.
If you wait and the interest rate level rises too quickly, you still have the option to make a shorter follow-up financing. The shorter term in turn reduces the interest and you can then refinance better when the level falls again. But this is also a risk, and you have to decide how much you can afford and when to pull out and close.