Financing with low repayment and many special repayments

Thank you for the answers. If everything goes really well, I could probably cover 3 to 3.5%. When it comes to money, I have also always been rather disciplined so far. I need to think it over again.

Most people use special repayments only inadequately. Often not even for vacation or leisure.

In the beginning, there is still quite a bit left. First the garage (first special repayment gone), then the outdoor area is supposed to be finished at some point —> also in year 2 and 3 no special repayment. Then the children come and need the initial equipment or turn 6 and need school supplies. The year was already so expensive anyway. Then unexpectedly the need for a new car arises, and in the first 10 years you have only made 1-2 special repayments. After 15 years, the interest rate is then half a percent higher and you have practically paid off nothing by then. In addition, you might also renovate a room again, the old bedroom and living room furniture have also had many years, etc.

Of course, you can do it differently, but with just 1% repayment it is hard for me to believe that you regularly add another 1.5-2% every year. In addition, you usually pay for the low repayment rate and the high special repayment right with a higher interest rate. So you pay quite a bit for flexibility.

Many banks offer 1-2 adjustments of the repayment rate during the term. Often one is enough if you then maybe top up the remaining money later again through special repayment.

The range of financing partners increases drastically if you provide 2% repayment. Only a few manage 1%. Also not an unimportant aspect.

if the bank offers you repayment rate changes, it does not matter at all whether you conclude the contract with 3% or with 1%, in the first case you reduce the rates immediately

For us at that time, it made no difference whether we repaid with 1% or 1+x %, the interest rate was the same.
Otherwise, some have already written here, the option of special repayment just requires
discipline and not to forget the regular saving rate for consumption

Even if you always provide the special repayment exactly as you imagine now, you will pay significantly more interest than if the money were part of the monthly installment – at least if you save “externally” and then transfer it once or twice a year collectively. And as long as the credit interest rate is below that of your loan. If you want to bet on massively rising interest rates, go ahead (I once got 3% on the Postbank Sparcard, but whether that will come back soon is uncertain). I do find the option of special repayment important, but what I want to pay regularly I would also agree upon as an installment. Possibly with the option to change the installment.

Hello,

I have heard countless times that I will use the [Sondertilgung] and then something was broken, someone treated themselves to something or did something to the house.

One should always consider what 1% more repayment means as an effort and what effect it has on the outstanding debt. You can also play around with it wonderfully in Excel.

Statistically speaking, very few use the [Sondertilgung]. I find it more than appropriate to start with a minimum of 2%.