Best rate personal loans debt consolidation -Request a loan debt help

What are you waiting for? Request a loan debt help

Currently, there are good opportunities to get debt consolidation, read what he said.

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid. 

Whether as a pension, investment object or as a protected space for your own family, the condominium or the home is still the target of many Germans. Rarely have the times been as favorable as now to procure the necessary capital on favorable terms. What is a nightmare for savers is a true paradise for home builders. The low interest rates of the Bank are just calling for investments in concrete.

But not everyone profits from interest rates at the lowest prices. Especially for loans that were concluded before the low interest rate phase, interest rates are usually significantly higher. Often there is a desire to make a debt consolidation or follow-up financing for older mortgage lending. Of course, everybody wants to benefit from the favorable interest conditions. Basically this is certainly a good idea, if it were not for the prepayment penalty, which can eat up the positive effects of debt consolidation.

Use our free Consolidating calculator now:

Use our free Consolidating calculator now:

Information on the topic “premature repayment” for fast readers:

  • At present, the low-interest-rate phase offers good conditions for concluding long-term mortgage lending.
  • A consolidation of the construction loan can be an enormous savings, however, the prepayment penalty should be observed according to 502.
  • If you terminate your mortgage early, under certain conditions no prepayment is payable.
  • There is a right of termination after the end of the fixed interest period and after ten years (from the date of full disbursement of the loan amount).
  • loans are often eligible for special unscheduled repayments. Prepayment interest is usually not required.
  • Withdrawal Joker: Due to a faulty cancellation policy, it is possible that you repost your building loan, without having to pay a prepayment penalty.

Financing the construction – how does it work?

In the private sector, mortgage lending is mainly used for properties with residential purposes, ie for single-family homes or condominiums. If the owner himself wants the property z. B. inhabit a house or condominium, is spoken by a self- financing. If a private person acts as a landlord and does not want to live in the property, it is about an investor financing, then the interest is tax deductible.

If you want to cancel your mortgage in order to benefit from the low interest rates, you should pay attention to the prepayment penalty.

There are various options for private real estate financing:

  • Equity (bank and savings)
  • securities
  • own work
  • borrowing

Banks, building societies, state promotional institutes, insurance companies are the main borrowers of the debt capital. Rarely are loans from relatives or the employer as part of a staff loan.

Low interest rates – a chance for builders

At the moment, we are in a low-interest phase, which is making saving more and more unattractive as the yield goes down. It looks better for investors who can get loans from the financial institutions with favorable conditions. Especially for long-term projects, it is almost tempting to set fixed interest rates today.

The low interest rates allow builders to save money. A little jealous will probably be the early builders who are trapped in the relatively expensive real estate loans with interest rates of three to four percent.

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid. 

Have the cancellation policy of your credit agreement checked free of charge and without obligation:

Benefit from low interest rates with forward loans 
For mortgage lending, a forward loan can also make sense. From the seventh term of your loan, a forward loan can be used. The forward loan is then used as follow-up financing. Upon conclusion of a forward loan, the forward loan amount will be paid to the borrower after this period. So it is with this loan form an additional loan. It serves to secure conditions and provides an additional possibility of follow-up financing. Even during the fixed-interest period, you benefit from better interest rates because you can secure them. In this case, the demand for prepayment is also eliminated. However, a forward loan must also be accepted, otherwise penalties are possible.

Consolidating mortgage lending – Pay attention to prepayment penalty!

Consolidating mortgage lending - Pay attention to prepayment penalty!

Basically, it is possible to cancel construction loans prematurely. However, individual forms of credit require the approval of the lender. This is often the case with mortgage loans. However, this step should be planned exactly, because usually for early Consolidating fees for the early repayment penalty due.

Due to the premature Consolidating of the building loan, the bank escapes high interest profits that it would have received on receipt of the old contract. This loss is referred to in the jargon as refinancing damage. This damage is caused to banks by the difference between the interest rate on conclusion of the loan and the amount of the interest on early redemption of the loan. Due to the fact that the banks are only able to invest the repaid capital due to the low interest rates with worse conditions, they incur high losses. As part of the prepayment penalty under § 502, however, it is possible for the banks to largely transfer these costs to the borrowers.

Due to the early repayment penalty, depending on the amount of mortgage lending, the borrowers may incur horrendous costs that can erode the positive effects of the refinancing of the building loan. If you are actually thinking about canceling your mortgage early, it is advisable to calculate the prepayment in advance.

Before you decide on a follow-up financing, you should calculate the prepayment penalty.

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