If you want to repay your home loan early, you should familiarize yourself with the termination options for real estate and construction loans and the early repayment penalty. This question depends on the cost of early loan repayment. If the loan is repaid early, the bank will no longer earn a margin in the future. The repayment amount describes the amount that must be paid in the event of early repayment in order to fully repay the loan. This article shows why and how a current loan should be replaced early at the end of the year.
Replace home loan prematurely
Is it possible to prematurely repay the home loan? Apart from variable loans that can be fully repaid at any time without deduction of early repayment and terminated with a notice period of three months, an early repayment and termination of a long term fixed income loan is only possible under certain conditions and may result in the payment of a early repayment penalty.
There is no prepayment for ordinary cancellation. The termination also includes the repayment of the remaining debt, which must be paid within two weeks of the termination taking effect. If the borrower wants to terminate the loan agreement early and repay the home loan prematurely, then he can invoke the special termination pursuant to 490 BGB if, for example, he can demonstrate a justified interest in termination.
Credit deterioration at another house bank or when the house bank refuses a larger loan amount or other loans, but this is possible with another house bank. In this case, however, the lender can not avoid the early repayment of lost interest income. The amount can range from several thousand USD in the 5-digit percentage range, the calculation is carried out according to certain procedures of the house bank (but in compliance with the legal calculation rules) and is hardly apparent to the layman.
If neither a proper nor an extraordinary termination is in the legitimate interest, BuyNer shall be free to meet the demand for redemption of the borrower. The fee for the early repayment can be arbitrarily agreed, however, the 2. Who wants to replace his housing finance prematurely and has no possibility of orderly or extraordinary terminations, this option should be well considered.
In case of incorrect cancellation instructions for the property and the construction field, the order can be canceled without calculation of an early repayment.
Where can I cancel my loan early?
Please provide us with the desired date on which you would like to repay your loan to determine the current repayment amount. We would like to point out that we need a few days in advance to give you the opportunity to complete the transfer on time. Therefore, we would like to ask you to give us a date that is 14 days in the near future.
We will then send you the repayment amount including interest by letter. Any interest differences will be debited to your account for the last time or paid by bank transfer. Therefore, we would like to receive a communication on the occasion of the early repayment of the loan.