There are factors that make you want to terminate a long-term real estate loan. Unemployment, divorce or death sometimes leads to financial bottlenecks that make it impossible to repay the loan installments.
To escape a personal bankruptcy, there is sometimes only the possibility of termination of the real estate loan and the sale of the property. Unfortunately, high costs often arise in this way.
A few years are usually not enough
To achieve a significantly higher purchase price than was paid for the purchase. The costs for brokers, notary, etc. are added to the previous costs. In particular, the early termination of the real estate loan can be expensive.
As a lender, the bank is entitled to compensation because it has to forego interest payments for the next few years. These compensation payments are called prepayment penalties. Currently, interest rates are very low, driving this fee higher.
The crisis affects interest rates
- A prepayment penalty will be payable in the event of early termination
- There are only a few possibilities for a special termination
- The revocation of a loan should be done together with a lawyer
Rescheduling installment credit – what matters is the timing
- In the case of a faulty cancellation policy: In recent years there was more often the case that banks have used wrong cancellation policy. If your contract was also flawed, you have the option to withdraw your loan. In this case, the bank may not pay you a prepayment penalty. Of course, you will still have to repay the missing installments (without additional interest). It is important that you consult a lawyer for this withdrawal.
- After a term of ten years: Even if you have chosen a mortgage loan with a 15- or 20-year fixed interest, you have the legal right to terminate this loan after ten years without having to pay a prepayment penalty. The decisive factor is the date on which you received the loan. In addition, you still have to observe a notice period of half a year. The loan can, therefore, be terminated after two years and six months.
Terminate loan early?
To terminate your loan without additional fees. However, this must either be ten years since the loan has been passed or errors in the cancellation policy of the contract to be found.
To withdraw a loan, you should always seek professional help from a lawyer. It can help to significantly reduce the pending compensation due. Request a Good Credit loan offer now Now to the online loan calculator and find the cheapest loan! X