A Sondertilgung is an unscheduled payment on a loan, made on top of the regular payment, that directly reduces the Restschuld.
The right to make one must be agreed in the loan contract and is usually capped at a yearly share of the loan amount, often 5% or 10%. Sondertilgungen shorten the term or lower interest costs, sometimes for a small interest premium.
General information, not investment or financial advice.
