Loans with special repayment
In Internet banking, you can now secure new interest rates for extending your loan: Save money with special repayment. Repayment Calculator WirtschaftsWoche you can go through different repayment options for loans. The possibility of an unscheduled repayment in the borrowing is capitalized by more and more borrowers.
Unscheduled repayments during the loan term
In real estate financing, special repayment is usually high on the list of interests. This is very unfortunate, because special repayments help to reduce a lot of weight that the house bank would otherwise collect for itself. In principle, the sum of the tranches to be paid does not change during the selected loan interest commitment.
However, one should not lose sight of the fact that the repayment share changes over time. Once borrowing costs are paid, the repayment share increases over time. Those who do not want to spend time alone, but still want to do something for the actual repayment to start sooner, can do a lot with special repayment.
The following example shows how much the savings from regular unscheduled repayments are: For better comprehensibility, we use two identical loans.
On the one hand, a special repayment of EUR 5,000 is made every two years, and not the other. For the sake of simplicity, the presented comparison and the calculations assume that the interest rate will not change over time. The comparison shows how high the total interest rates are, if no unscheduled repayments are claimed and what savings the borrowers make through unscheduled repayments.
The positive side effect is that the loan was repaid eleven years and six months earlier. With a repayment calculator tailored to your loan, our clients can gauge the effects of unscheduled repayments during the loan process.
What to look out for for special repayments
More and more debtors are attaching great importance to the possibilities of unscheduled repayment on borrowing. Many forms of financing today offer special repayment, but they are linked to individual loans with a financial overhead and can thus develop further fees. Before a special repayment, you must check what additional costs are incurred.
Beyond the monthly benefits go special payments. If the special repayment leads to a premature repayment of a loan, the principal bank usually settles a prepayment decision. If a borrower wants to make a special payment, he must comply with the terms of the loan agreement.
However, this can lead to a restriction of special repayment. With these special payments, the borrowers can secure different benefits. This can shorten the duration of an investment and reduce the monthly installments that would be feasible. In addition, these special payments can save the interest costs to be paid.
Therefore, borrowers should ensure that they can negotiate free unscheduled repayments when entering into a loan agreement. In the case of a loan, such repayment may be made once or several times.