Financing with low repayment and many special repayments

That's exactly the problem!

I wonder how one wants to save up for an early repayment when 1% repayment already accounts for about 30% of household income.

What happens when less money comes in or bigger expenses arise, how does one then save up the early repayment additionally?

..

Exactly that is the problem (Karsten [emoji6])

I also believe that the direct bank will then come with some bad conditions. It’s not that easy anymore to get money cheaply with a blast.

An example calculation would look something like this:

400,000 Euro loan
==> 1% repayment = 4,000 Euro
==> 2% interest = 8,000 Euro
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= 12,000 Euro / year ==> 1,000 Euro / month

1,000 Euro / month = 30% of net income ==> 3,333 Euro / month net income
with 2% repayment it would be 1,333 Euro / month

In addition to repayment and interest, there are additional costs, electricity, and definitely personal reserves for car, household purchases, etc.

Then you don’t know how many people have to live off the rest.
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If it were only a 200,000 Euro loan, all other amounts would also be halved .. including the net income.

To extend the example further,

1% repayment at 2% interest for a €400,000 loan means after 10 years €44,239.87 repayment with €75,760.13 interest payments. Term 55 years, provided the condition remains the same. Payment €1000 p.m.

2% repayment at 2% interest for a €400,000 loan means after 10 years €88,479.28 repayment with €71,520.32 interest payments. Term 34 years and 9 months. Payment €1333 p.m.

A 33% higher monthly burden thus leads to double the repayment and a loan term shorter by 20 years. Phew.

I will think everything over again.

Thank you also for the certainly critical input.

Steffen der Zocker legt bestimmt das Geld in Aktien an.

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