However, early termination of mortgage loans can be very expensive. If you want to reschedule your mortgage, you have to repay your building loan prematurely, which can lead to problems. Sometimes it’s just time to replace mortgage lending prematurely. Since interest rates rose significantly three or more years ago, many borrowers want to withdraw from the contract early.
Building savings: You no longer pay
A premature termination of the financing of real estate is often associated with higher costs. According to a recent Market Watchdog Finance investigation, so-called early repayment often accounts for more than 15% of the remaining debt. Some banks also provide loans with a possibility of termination against a fixed interest payment, which you have paid off after two or three years without advance payment.
In this case, you not only have to repay the remaining loan volume in one go, but generally also pay the so-called early repayment penalty. The amount depends, among other things, on how you finance yourself and what you have promised when you sign a contract. Repayment options for pre-financing loans are rare. Those who leave an order without such agreement usually have to pay extra.
Can I avoid payment in advance?
With these loans, you have the option to repay the loan two or three years after signing the contract without any early repayment. If interest rates on the capital market fall, you can reschedule your debts without any problems, and there is no early repayment even in the event of a financing interruption. The extent to which this will pay off for you depends on the likelihood that you will be able to terminate your contract while interest rates are still fixed and how high the early repayment penalty might be in such a case.
If you have another, unencumbered property, you can provide it to the house bank as collateral. If it provides the house bank with at least the same collateral as the property sold, it must have agreed to the exchange. What is the impact of early repayment on signing? To reduce the risk of early repayment on settlement, you can negotiate specific repayment options with many providers.
In most cases, the higher the repayment, the lower the early repayment. Even if you do not make use of the special right of termination granted to you in the contract, you reduce the early repayment. In determining the early repayment, BuyNer must consider special repayments that would have been possible in the future. However, this possibility is only offered in exceptional cases for pre-financed Bankate contracts.
Even if you never take advantage of this possibility, the principal bank must accept the highest possible repayment installment if it calculates the early repayment penalty after the extraordinary termination of the loan agreement. If you agree on special repayment rights or facultative repayment installment changes, you should ensure that these are included in the calculation by the house bank.
Once you have agreed on a fixed interest rate of more than 10.5 years, you should make sure that the institution has taken into account its regular right to termination in the calculation: In the calculation, the house bank must assume that you from this Have made good use of it. How can I check if the prepayment has been calculated correctly?
It is not uncommon for a bank to make wrong calculations. With regard to the prepayment charges, it requires that the early repayment charges are determined in a simple and transparent manner, that they are limited to a maximum of five percentage points of the remaining debt and that consumers are credited with increased market interest rates.