Installment loans, loans without repayment, installment loans without land registry security. The amount of the prepayment penalty depends on the one hand on the remaining debit interest and on the other on the residual debt. If a mortgage loan with a fixed interest rate is to be terminated many years before the due date, the bank often has to pay a costly prepayment penalty. The persons concerned should calculate exactly whether the fine was calculated correctly. In the event of early termination of a real estate loan, the bank will calculate prepayment interest as compensation.
Early repayment penalty: Pay attention to the correct calculation
If a mortgage loan with a fixed interest rate is to be called up many years before the due date, the principal bank often has to pay a complex prepayment penalty. The persons concerned should calculate exactly whether the fine was correctly calculated. The disadvantage, however, is that a loan with fixed interest rates can not easily be brought forward. Basically: contract is contract. However, many unincorporated banks will accept early termination if there are serious indications.
However, such a concession is not only unselfish: In such situations, the house bank demands a prepayment penalty for the lost profit. Depending on the loan amount and the term, this can amount to several thousand USD. However, an arbitrary calculation of the prepayment penalty is not permitted. Put simply, the calculation is as follows: minus: In general, the interest rates set out in the loan agreement are much larger than the interest income that the house bank can obtain if it repays the loan money prematurely.
This often leads to a high prepayment penalty to the house bank.
However, the ECJ has decided that credit institutions may not be charged to achieve the highest possible prepayment penalty. Therefore, consumers should check the calculation of their house bank or seek advice from a consumer protection association. 2. A legal right to immediate termination of a mortgage loan agreement is excluded in principle.
In some cases, however, it may also be in the interests of the banks to terminate a loan against payment of a prepayment penalty in good time. A land sale due to a professional move to a distant city can also be an occasion for an early termination of the loan agreement. However, there is no reason to terminate the loan prematurely because the borrower is simply looking for a favorable interest rate level for follow-up financing.
But not only a longer period of time can protect a borrower from a prepayment penalty. In many loan agreements from 2002 to 2010 false termination instructions are found. In principle, a loan agreement can be revoked within 14 days without consequences. However, if the cancellation policy contained in the credit agreement is misleading and thus ineffective, the revocation period will start one year later.
This has the consequence that the purchase contract in such situations is resolvable. The early repayment is then not required. Mortgage loans can only be withdrawn from this date for one year and 14 days if the termination instructions in the contract are incorrect. Before solving a mortgage loan early, you should now quickly check if the repayment statement is wrong â € “then the loan can be terminated at any time and no prepayment penalty is required get paid.