Which loan should be paid off first using a special repayment? Help!

  • Erstellt am 2012-12-18 12:19:23

massimo

2012-12-18 12:19:23
  • #1
Hello, we have a problem. We bought a house, the financing was divided into three loans. 1. Loan €50,000 prepayment 100% nominal interest rate 2.9 2. Loan €149,000 prepayment 5% nominal interest rate 3.75 3. Loan €95,000 prepayment 0% nominal interest rate 3.4 term 10 years. I always hear that the expensive loan should be paid off first. Now to our case! If I make a prepayment of €5,000 every year, I would have completely paid off the €50,000 KFW loan 1 before the 10-year term. That is better for me than paying off the €149,000 loan and still having to pay €100,000 from loan 2 after ten years and the two other loans continue. After 10 years I have to refinance and then I always have to borrow the same amount of money.
 

Nilo

2012-12-18 14:21:18
  • #2
Since all your loans have a term of 10 years, you should preferably pay off the loan with the highest interest rate first (in this case, loan 2). However, I don't know how the conditions of [Kfw] after 10 years for new fixed interest periods compare to the other loans. You must of course also take that into account.
 

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