1) because with a bullet loan you only pay interest, which is higher than what you get on your repayment capital
2) with many forward loans no special repayments are allowed
3) in the event of early exit or repayment of the loan, the prepayment penalty must be paid on the full amount and any special repayments and increases in the repayment rate for the remaining time are not considered in the calculation of the prepayment penalty as if they were made and thus deducted from the respective debt
4) reduction of the monthly burden in economically difficult times can only be made with the bank’s consent, if this should become necessary
5) with most pre-financing models (Sparkasse with LBS, Volksbanken with Schwäbisch Hall and Commerzbank with Wüstenrot) it is not possible to freely choose the best building savings contract tariff, but one of the three bad ones has to be taken
6) the forward loan interest rate is often not the cheapest interest rate
7) one must know that this model is often signed by uninformed customers and/or pushed on customers by banks in cases of high loan amounts (financing without or with little equity), and one of these customers must have been the original poster as well
Mind you, I’m open to discussing the model with owner-occupiers, capital investors, or rented properties, but I assemble the construct independently from the bank with the best interest rates and a building savings contract from Alte Leipziger or BHW.