Repay savings or save? + Secure interest rate

Agree on the option for special repayments per year to be as high as possible, and a 15-year fixed interest period seems to me for people who are disciplined also a possibility to be done after 15 years and yet not to be completely exposed in case of possible [GAU] events.

In my opinion, a building savings contract only makes sense if you receive the [Wohnungsbauprämie]. Above a certain income level, it no longer applies; otherwise, for married couples, it's a decent 90 euros per year. You can then consider this as an interest substitute (interest rates are currently laughable), and the return is okay. The [Wohnungsbauprämie] is almost exclusively available for building savings contracts (I don’t like funds; they are too speculative for me). Otherwise, it would be wasted money. We save the maximum 1000 euros per year there; the rest goes into special repayments (we just made the first one after 2 years, and we will probably manage the second one within the first fixed interest period of 5 years).

Hello,
so I will use two existing building savings contracts to reduce my interest rate risk after the fixed interest period.
I have calculated everything thoroughly. Different interest rates, different terms, savings rates of the building savings contracts calculated so that they are allocated at the end of the fixed interest period, etc. It should also be noted that the fixed interest period of the KfW loan (if involved) also expires after 10 years.
The big unknown is the level of the interest rate after 10, 15, or 20 years. Personally, I have calculated with an interest rate of 5% for all terms. However, I suspect that the longer the term, the higher the follow-up interest rate.

My constellation as an example:
KfW loan 153 bullet maturity since the same interest rate as amortizing loan, saved amortization goes into bank financing. One building savings contract with BS €50k is saved and used as interest rate protection.
Bank financing for 10 years with low interest but high amortization. Second building savings contract is saved with a small amount (lead time) as interest rate protection. If the interest rate of the building savings contract for protection proves worthwhile, the remaining amount of the building savings contract will be pre-financed and the contract used accordingly for repayment of the bank financing.

With a follow-up interest rate of 5%, this option is about €5k cheaper at the end at the same term than with a loan with a 15-year term.
The break-even for the 15-year loan is somewhere at an interest rate just under 6%.

Best regards
Jochen

Have you also calculated how large your remaining debt would be if you do not pay anything into a building savings contract but instead put the amounts into a special repayment?

Hello,

a home savings contract is not worthwhile in this low interest phase. You also lose money due to the low savings interest (inflation is higher).

I would always recommend choosing a fixed interest period of 15-20 years and repaying as much as possible.

15 years are at most 0.3% more expensive.

A building savings contract is always a bet on rising interest rates. In the low interest rate phase, at least the probability is relatively high that the interest rate will rise again. The only question is by how much. As far as I can remember, in the variants I calculated, 5% was not sufficient for the building saver to have benefited.