Interest rates of 4 to 6 percent? They’re still in old loans. But there is a special right of termination. Quick advice in two minutes.
Dhe whims of the interest rate markets are difficult to calculate. You proudly take out a 4 percent real estate loan and still think you’ve made a good cut, and a few years later your neighbor tells about his 0.8 percent interest rate. What to do? He’s probably not that much more creditworthy. If you cancel your old loan without further ado, you usually don’t get much of it. The legislator grants the bank a prepayment penalty if the loan is terminated prematurely. Anyone can work out what the fun costs on the Internet: quite a lot. You can stay with the old loan right away. That is also the point of the regulation: calculability for banks and not constant loan changes depending on the current interest rate. Compensation is also due when the house is sold and the loan is no longer needed. A transfer to the buyer is possible, but not easy.
Since real estate loans are about a lot of money, armies of lawyers have been studying how to get out of old, expensive contracts. The result is sobering. Incorrect cancellation policy is most likely a lever, but the chances of success are very slim.
What is there is a statutory right of special termination after ten years. The bank will not specifically point this out, so it is good to know. So anyone who is in a loan that is older can terminate immediately. This makes sense because such old contracts are often equipped with 4, 5 or even 6 percent debt interest. Anyone who has obtained money through inheritance or otherwise should exercise their special right of termination immediately. If you need a new loan, you should make sure beforehand that you really get a cheaper loan. Everyone else can look out for special repayment options and thereby shorten the time on the expensive loan a little.
Do you have any questions about money? Please contact Daniel Mohr at [email protected]