Are arbitrarily high special repayments legally possible after 10 years?

Section 489 Paragraph 1 Number 2 of the Building Code

§ 489 Abs. 1 Nr. 2 Baugesetzbuch

It says "The borrower can terminate a loan agreement with a fixed nominal interest rate in whole or in part ...". I tend to agree with Finanztest because of the word "in part". @ ?

Indeed, I had never seen it that way before ...

Yes, the borrower is not supposed to be obligated to repay in full if he can only repay partially. He can therefore, for example, repay 100,000 euros when there is actually still 200,000 euros of loan outstanding.

More important, however, is probably that a refinancing with perhaps significantly lower interest rates can be agreed upon.

So do I understand correctly that it is apparently possible to make unlimited special repayments after 10 years and 6 months? I should bring this up next week at our appointment with Dr. Klein. I find this clause quite interesting and important. Personally, I do not believe that the interest rate will still be the same or the same again in 10/15/20 years as it is now. Which means that refinancing then would not be ideal.

I personally don’t believe that interest rates will still be the same as they are now in 10/15/20 years or that they will be this way again. Which means a refinancing then wouldn’t be the ideal solution.

Ten years ago, most people probably thought the same after the bottom of 3.5% had been passed.

I’m curious when the first people will come up with the idea to fix for 5 years and then do the follow-up financing in 5 years with an improved loan-to-value ratio. In hindsight, that probably would have been the better choice for me. Unfortunately, you don’t know that beforehand.