If consumers prematurely replace their loan, they end the loan still within the contractually agreed fixed interest rate. The term “replace” in this context can mean both “termination” and “revocation”.
There are several reasons why a borrower might want to replace his loan, even before the term ends. This can be an inheritance, a real estate sale, the desire for a rescheduling at lower interest rates or a faulty cancellation policy.
The fact is that the early repayment of the loan, however, also entails costs, namely the payment of prepayment penalties to the bank. But not always this must be provided. How to cleverly replace your loan prematurely, tells you this guide.
Kurz & Knapp: Information on the topic “Loan prematurely” for fast readers:
- If a borrower wants to repay his loan prematurely, then the bank demands from him the so-called prepayment penalty for the resulting damage
- If the contract of the borrower contains a faulty cancellation policy, then he can most likely bypass the prepayment penalty
- Customers with a Intrasavings bank loan can replace this premature and have a good chance of avoiding a prepayment penalty on this loan. This is due to the fact that Intrasavings bank Bank is offering a special unscheduled repayment. Customers can repay their Intrasavings bank loan here on a monthly basis.
- Without a faulty cancellation policy, real estate sellers or heirs will probably have to accept that they are threatened with a prepayment, which they also have to pay if they want to repay their loan early.
Early termination of the loan: when it pays
In any case, it pays to want to replace a loan early, if a lawyer or a local consumer center has determined that you received a faulty cancellation policy. Lawyer and Consumer Center check this for consumers for a small fee. Then the chances are particularly good to be able to replace the loan prematurely, without having to pay a prepayment penalty.
That means the next steps should be taken. First of all, customers must therefore determine the amount of their remaining debt in order to plan their financing with the lending bank. So you have to organize a follow-up financing. If there is no inheritance, you should compare bids from other banks.
This project is called debt restructuring. Customers are trying to borrow a new loan or loan from another bank. This pays off particularly favorably at present, because by the record-low interest rates can save a lot of money.
The debtor therefore receives a new loan in the amount of the remaining debt and “exchanges” quasi his old interest rate of, for example, seven percent in perhaps just two percent.
Info & Tip: Let the new bank give you a written confirmation of the planned financing. This should be valid for at least four, but better six weeks. Incidentally, banks today can only guarantee an interest rate for a maximum of one or two days, especially in real estate financing. The promise, however, that this interest rate will be issued later daily updated, can be insured longer.
Only now should customers take over the replacement of the old loan and submit a withdrawal or termination. You should not sign the contract with the new bank, if the bank does not ward off this and the loan can terminate prematurely. That’s really important, because otherwise you would have to pay off two cash bonds. In addition, customers usually have only 30 days to settle the remaining debt at the old financial institution.
The real estate loan prematurely replace
Life is like a box of chocolates: you never know what you will get. For example, private circumstances, such as divorce or unemployment, may cause homeowners to prematurely repay the loan they have taken on their property.
As a rule, real estate owners then decide to sell the building and pay off the loan on the sales proceeds.
If the bank agrees, then a loan takeover could be considered here. Of course, this succeeds only if the buyer agrees to this as well. However, given the current low interest rates, this is rare, so buyers prefer to take out a loan.
Thus, the seller has almost no choice but to seek an early repayment of the loan and ultimately perform. Because a prepayment penalty is likely to be incurred here – except in the case of a faulty cancellation policy – the buyer should try to calculate the prepayment interest in advance. There are various computers on the Internet that calculate a rough guideline. Then the buyer can beat this money on the selling price and replace the loan, without risking further debt through the prepayment.
Successfully replace a Intrasavings bank loan
Is there a prepayment penalty for a Intrasavings bank loan? Not necessarily. Although the house bank has the right under law to demand a prepayment penalty for the early repayment of the loan, but at the Kreditanstalt für Wiederaufbau – Intrasavings bank for short – some other regulations exist.
The loans and credits of Intrasavings bank are state subsidized. This means that they are partly borne by the Federal Republic and partly by the federal states. However, Intrasavings bank awards its loans through other banks and does not do so itself.
The Kreditanstalt für Wiederaufbau für Baufinanzierungen is especially popular. For example, many home loan brokers work with those banks that have Intrasavings bank loans and loans in their repertoire.
Is it possible to replace a Intrasavings bank loan early?
The option of repaying the Intrasavings bank loan ahead of time exists. Not only are loans often issued by Intrasavings bank on better terms, they can even be terminated on a monthly basis.
That’s because Intrasavings bank offers a free special repayment. Therefore, the borrower can terminate his loan contract early, both in whole and in part. Therefore, even if a minimum amount of EUR 1,000 is paid, the debtor may repay part of his Intrasavings bank loan prematurely. However, the prospect of being able to repay the loan at any time is usually only during the first fixed-interest period.