Thoddy72
2013-07-05 17:47:13
- #1
Hello,
I could not find a suitable answer to my question in the forum, so I will describe my concern here:
Our 10-year loan with a cooperative bank has been running for about 5 years now. Since we agreed on just over 4.6%, we want to calculate whether, considering a prepayment penalty, it makes sense to repay the old loan and take out a new one at the currently more favorable conditions.
We were aware that our bank would have little interest in this. In the consultation, the option was also denied to us. So far so good. However, the reason given was an alleged legal regulation that only allows such early repayment in the case of a house sale. It was explicitly stated that it is prohibited if the reason is merely a possible financial advantage for the customer.
Is that true? Or was it just a silly argument by the advisor?
Thank you very much and best regards.
I could not find a suitable answer to my question in the forum, so I will describe my concern here:
Our 10-year loan with a cooperative bank has been running for about 5 years now. Since we agreed on just over 4.6%, we want to calculate whether, considering a prepayment penalty, it makes sense to repay the old loan and take out a new one at the currently more favorable conditions.
We were aware that our bank would have little interest in this. In the consultation, the option was also denied to us. So far so good. However, the reason given was an alleged legal regulation that only allows such early repayment in the case of a house sale. It was explicitly stated that it is prohibited if the reason is merely a possible financial advantage for the customer.
Is that true? Or was it just a silly argument by the advisor?
Thank you very much and best regards.