Which credit model - 15 or 20 years?

But absolutely want to save the last cent at MediaMarkt, Aldi, or on account management fees...

Or save 0.1% interest... they are fighting for the last millimeter and you come along here with such generosity. That's perverse.

Saving 12 or 16 thousand euros is a new car in the form of a Corsa or Fiesta (without follow-up costs).

We had exactly the same consideration and also want to fully repay in 15-20 years. The monthly burden would then be 3300 EUR, so we decided on the following option:

200k fixed for 5 years at 1% (1% repayment)
300k fixed for 15 years at 1.9% (2% repayment)

That makes a manageable 1334 EUR. The rest via special repayments and saving up.

Regards, Steffen

The economic winner will be the bank, unless everyone makes all the special repayments as planned. However, not even one in five people in Germany does that.

Why is this the bank? There are only two possibilities: the income remains stable, then we are done in 15 years or even sooner. If something in between happens and we can pay significantly less, at least we won’t get into financial trouble. There is no lack of discipline. We have saved for 10 years... not rigidly, but consistently.

The winner is the bank, because with the very low repayment you have a higher interest cost component and therefore initially pay significantly more interest to the bank than necessary. Prepayments naturally reduce this amount, but they must also be possible in the amount that would have allowed the repayment (+possibly prepayment). The option costs for the corresponding prepayments have, of course, already been paid to the bank, and prepayments always occur retrospectively.

All in all, a win situation for the bank with the option that the loan actually runs longer (if not every prepayment is made) than calculated and priced in.

@toxic You can also shop for years only at the discount store and at C&A and at the flea market, drive the smallest gasoline car, spend vacations only in a holiday apartment or at the campsite. There is plenty of potential to save everywhere, not just at the bank. The real question is whether you want it that way!