Special repayment, saving or consumption?

Huh?

Children are planned in about 5-8 years. Then every reduction of the repayment rate makes things at home significantly easier, doesn't it?

The wife might possibly stay at home – the 2nd child arrives – possibly the wife earns only 30-50% of her salary for the next 5 years. If I then have to repay €400 less, I can compensate for the missing income.

So I should naturally try to ensure that the repayment decreases significantly.

The plan: As long as we are two, save a good amount of money and put it into special repayments, so that in 10 years, when the loan can be paid off, the repayment rate also decreases and more money remains for living?

Every situation has to be considered individually at the beginning and can develop differently.
For example, we built [a house], at which time the child had just been born and my wife was on parental leave.
It was unclear to what extent employment would be possible afterwards. A 2nd child was very unlikely, but not impossible, etc.
Therefore, we started rather with low rates and everything else was done through special repayments.

In your case, you could also arrange things differently, e.g. with changes in the repayment rate and special repayments. That is much more flexible than a fixed expiration of contracts every 10 years. There are rumors that the desire for children and getting pregnant do not always coincide at the same time.
Some are already pregnant when the desire was still far away, and others try for years.

With you, one could also arrange things differently, for example with changes to the repayment rate and special repayments. That is significantly more flexible than a fixed expiration of the contracts every 10 years. There are rumors that wanting children and becoming pregnant do not always happen at the same time.

There are rumors that in reality, the special repayment repeatedly fills in anyway due to unplanned costs during construction, purchases like garden furniture in the first 1-2 years after moving in, a new and larger family car, wedding, etc.

I think the change in repayment rates is, of all options, the most reliable and elegant way to "finance" children in x years.

Definitely special repayment. I bought a house in 2013, and since then I have made the special repayment in full every year, after 5 years even increased the installment by 50%, and now I only have 20 installments left and after 9.5 years at 41 I will be done with the house instead of after almost 30 years at almost 61 - and that only if the interest rate remains unchanged.

And no, we have not had to do without so far - we were able to go on vacation 1-2 times a year and otherwise we did not have to restrict ourselves. I can hardly wait to be debt-free and no longer have a burden weighing me down.

I must also admit that I am marked. My parents lost their house back then through a forced auction. Therefore, it was always important to me to complete the financing as quickly as possible so that something like that cannot happen to me.

But that only works with very cheap property, drastically increased income, inheritance, or lottery win. Certainly not under normal circumstances.

But that only works with very cheap property, drastically increased income, inheritance, or lottery win.
Certainly not under normal circumstances.

No, that was willpower and discipline. Of course, our income has increased since then, but we stuck 100% to the financial plan we made at that time. If it had been up to my wife, the special repayments would have been spent on other things — just as it is with many — same with the planned installment increase after 5 years. If it had been up to my wife, we would have squandered the money elsewhere. Now she laughs about it herself and is glad that we will have it done soon. Having a little extra money to spend in between was never important to me, but not having to pay any more installments and having so much more money available every month — that kept me going.

No, it was about willpower and discipline. Of course, our income increased compared to back then, but we stuck 100% to the financial plan we made at the time. If it had been up to my wife, the special repayments would have gone to other things too – just like it is for many – also the planned installment increase after 5 years. If it had been up to my wife, we would have squandered the money elsewhere. Now she laughs about it herself and is glad that we will have made it soon. Having a little more money to waste from time to time was never important to me, but not having to pay installments anymore and having so much more money available every month – that kept me going.

Exactly the same is our plan, I see it exactly as you do!

The mindset nowadays is definitely different. It may not be wrong, no question, but I much prefer the conservative attitude of "being debt-free earlier, having more money available, lower debt/installment rate monthly" rather than the calculations with inflation, investments around it, diversifying as much as possible to save 2% p.a. more (we do that too ).

There is no right or wrong here... it is always individual to consider. For us, it actually makes sense to save/special-reimburse so much in the next 5-6 years, in which "hopefully" no child will come yet, that we can pay off the first loan directly after 10 years and thus reduce our monthly installment. That helps us significantly more than any investments/consumption around it or anything else...