Loan with an interest rate of 2.51% - Tips for financing

You contradict yourself ... . Did you perhaps make a typo or confuse something?

You contradict yourself ... . Did you perhaps make a mistake or confuse something?

In what way?

You should above all realize that [Sondertilgungen] are not a "nice to have," but the most profitable way for you to pay off your loan debts!

Why is that the most profitable way?

Since the portion of principal repayment increases exponentially over the term, this is the biggest leverage to keep costs low and the total repayment amount too high within the time.

Here it is about the normal repayment, which is included in the monthly installment. Doesn't that contradict the first sentence?!

Saving up on the side is usually especially profitable for the bank, not for you. Because that reduces your possible leverage for [Sondertilgung].

That also contradicts the first sentence again?!

Maybe I just misunderstand you, if so ... sorry for the confusion. :D

Why is this the most profitable option?

Because there is nothing more profitable than reducing your debt burden as quickly as possible. The savings from this grow exponentially.

This is about the regular repayment included in the monthly installment. Doesn’t that contradict the first sentence?!

The repayment includes both: special repayment + regular repayment.
However, the ideal would be to keep the possible special repayment unlimitedly high and the fixed agreed repayment as low as possible. Then you could repay your loan as quickly and flexibly as possible depending on your capability, and at the same time, in case of financial problems, you would mostly only have to bear the interest burden.
The opposite and disadvantageous model for you is the fixed rate without the possibility of special repayments or changing the repayment rate. There, you have to keep a safety buffer (extend the payment period longer than necessary) and depending on the agreed repayment rate, you could more easily get into payment difficulties.

"I don't like building savings financing" is quite a statement – but certainly not helpful. Let the bank advisor do the calculations. He should simply compare an annuity loan from his bank alongside the building society. The more clearly you are above 1% initial repayment, the better the comparison will turn out for the building society. But it doesn't have to be. So: have it calculated and rely on the numbers.

Riester: definitely get advice from experts. Funding does not always have to be repaid in case of emigration (is that REALLY the case??) or nursing home. Recommendation: Stiftung Warentest also has FAQs on this topic. Please keep up to date.

Of course, you can still apply for KFW 124, but it’s not a free gift either and the bank’s offer is cheaper than the KfW in this program. That’s probably why the person gave you this offer. Doesn’t sound bad, but I don’t want to evaluate it because I’m missing too much information.