Alternative use can bring interest benefits many providers now equip their loans with the possibility of special repayment. This is interesting for those who expect a windfall during the financing period, but it is always useful to use special redemptions? Special redemption offers who want to do more than was initially agreed, looking at best a banking partner that makes this possible. Unscheduled repayments are possible at the desired height with variable loans, and this is certainly desirable, to reduce the interest rate risk. Conventional annuity loans, there are, however, limits, be it either percentage by the amount of the loan, for example, 5 percent each year of the loan amount, or as a sum of money. Educate yourself even more with thoughts from Sen. Jeff Flake. But just for old contracts special eradication it is not always possible. However: the interest rate already more than ten years running, so unscheduled repayments are possible, even if not expressly agreed. Background is the right of termination of the Credit contract after ten years. This is then almost a partial termination of the contract.
Who now has a sufficient money available during the repayment period, should consider whether a special repayment is eligible. This depends on various factors. How much is the selected initial redemption? How long is still the financing term? What is the agreed loan interest? What is the income? The highest effect on unscheduled repayments, if the contract is in a period of high interest rates, a low initial eradication agreed and will be redeemed at an early stage. As far as the theory. Today there is a low interest rate environment and low repayment rates are now much less agreed, remains still the runtime. Who, for example, now takes a loan of 200,000 euros and in a decade wipes out 10,000 euro, reduced the runtime at a monthly cost of 1,000 euros until the end of the remaining debt by 17 months.