Prepayment penalty

Why are they missing out on interest? Above you wrote that you were charged significantly more than the interest.

When a loan is paid off early, the bank misses out on interest. What is the bank supposed to do with the money? Park it at the ECB and pay penalty interest?

I only referred to the objection in #23 and #27.

The calculation for a 30,000 euro loan is the same as for a 300,000 euro loan

Yes, yes, at that point the bank suddenly forgets how to calculate percentages... Funny, when it comes to arrangement fees for a new loan, it does matter whether it’s 30,000 or 300,000 EUR. Always as they need it.

Yes, yes, at that point the bank suddenly forgets how to calculate percentages... Strange, when it comes to closing fees for a new loan, it doesn't matter whether it's 30,000 or 300,000 EUR. Always as they need it.

Oh Steffi, bank bashing is actually out of fashion again.

Processing fees belong to the past in construction financing. But with the notary, court, and broker, something like that is okay again, right?

The fact is that the processing of the VFE is always the same in terms of effort, provided the basis is identical. Regardless of the amount.

The same applies, by the way, to loan agreements, as long as higher amounts do not cause more effort (and that does happen).

Besides, processing fees for variable loans were quite suitable for covering the one-time (initial) fixed costs and thus offering a low follow-up interest rate. Now the interest rates are higher and permanently so. In this respect, that was a shot in the foot for consumers.

I have already terminated a loan three times. Each time, the VFE was lower than the remaining interest. This also makes sense because the interest consists of costs (salaries, etc.), refinancing, and expected risk. In the event of a termination, at least the risk and refinancing are eliminated, but increased costs for manual effort arise. In this special case, the remaining interest was probably simply lower than a flat-rate cost allowance set on a lump-sum basis.

I have already terminated a loan three times. Each time the early repayment fee was lower than the remaining interest. That also makes sense since the interest consists of costs (salaries, etc.), refinancing, and expected risk. When terminating, at least the risk and refinancing are eliminated, but increased costs for manual effort are added. In this special case, the remaining interest was simply lower than a flat-rate cost allowance.

Refinancing/ risk partly no because the bank refinanced on the liability side and/or hedged against the interest rate risk with interest rate swaps. It's always not easy to understand for an outsider. You always see the fees first and don't want to pay them.