Full repayment loan with changes in repayment rate

At most banks, the initial repayment rate may not be undercut when changing the repayment rate. I would definitely have that confirmed in writing, because no one can remember spoken words afterwards.

At most banks, the initial repayment rate may not be fallen below when changing the repayment rate. I would definitely get that in writing, because no one can remember spoken words afterwards.

Moreover, a full repayment usually entails a full repayer discount; this is also evident in the offers here—more repayment, better interest rate. The reason: the bank has lower risk costs because the risk decreases faster.

Why these mechanisms are being overridden at this bank makes me suspicious, and basically, I cannot really imagine that being the case.

Which bank is it? Once named, it can be clarified quickly.

At most banks, the initial repayment must not be fallen below when changing the repayment rate.

But there are plenty that allow it. Especially if you start with 2% repayment, otherwise it would only lead to an increase in repayment. And the purpose of changing the repayment rate is also to get through weaker times and be able to reduce the repayment.

It is about Deutsche Bank. The repayment rate can be freely changed between 1% and 5% during the fixed interest period (2x during the fixed interest period), provided that the entire loan is repaid within 40 years mathematically. That is how Deutsche Bank calculates it.

Of course, I save interest every month the lower the interest rate is.

If I pay, for example, €400 interest monthly at the beginning after full disbursement at a 2% repayment rate with an interest rate of 1.7%, then I pay less than €400 interest at an interest rate of 1.6% with the same repayment. That way, you save real money on the interest while the repayment remains the same.

You don't save any interest though, since you hardly repay any principal. Full repayment then only exists on paper. After 20 years, how much will you have paid off? The more you repay, the less interest you ultimately pay. I am surprised that this remark did not come up from my predecessors—I am certainly no financial expert.

I plan to reduce the repayment rate from 4.27% to 2% and take advantage of the 5% p.a. special repayment option.

I plan to reduce the repayment rate from 4.27% to 2% and to take advantage of the special repayment option of 5% p.a.

well you have to 1 - always ensure that 40 years are maintained. 2- the thing with the special repayment is also always very vague. You want a lot, can do some, or then don’t want to. Especially since you obviously don’t want/can’t repay more than the regular 2% per month

Just meant to be a thought-provoking suggestion

So I’m torn between do 3% rather and live with it than make such adjustments