For some banks, they are a matter of course, with other banks to ask: Additional agreements are not always included in a loan agreement , offer the borrower usually some benefits. Because of this, it is well worth it, if once checked in this regard before closing.
Special repayments are not automatically an integral part of loan agreements. The best way to ask directly when applying for the loan , whether one or more times a year free special repayments are possible.
A not to be despised additional agreement is the possibility of special repayments. Here it is possible, depending on the bank , either once or several times a year, to pay a certain amount in addition to the monthly installment . This procedure has two advantages: On the one hand, the loan amount is reduced faster and, on the other hand, you save interest .
For example, special repayments can be made if a certain sum has been inherited, the employer has paid Christmas bonuses, a home savings or life insurance policy has been paid or something similar. Of course, it is also feasible to put back a certain amount each month and then pay it.
If special unscheduled repayments have been agreed in the loan agreement, it is easily possible to make them in the respective amount. However, if there is nothing in the contract in this respect and you still want to make such a payment, this is either not possible at all or only for a certain fee. This is the so-called prepayment penalty . This is required by the banks because of the interest income lost due to the special repayment . In such a case, it should be recalculated well in advance whether the special repayment in spite of payable prepayment penalty is worthwhile or perhaps not.
In order not to have to pay any fees, it is therefore much better to make an advance payment and to ask directly for the loan application for the possibility of free special repayments.
Payment protection insurance
The residual debt insurance is used, for example, in the case of death or unemployment of the borrower. It is best to individually check whether such insurance is worthwhile.
Although some banks already offer the completion of a residual debt insurance by themselves, with other banks must be nachgehaktem in this regard. The residual debt insurance occurs, for example, in the case of unemployment or death of the borrower. So you have in the case of the sudden loss of employment not even worry about paying the installment commitment thought. Should the borrower unfortunately die, the bereaved do not have their financial worries to grief.
However, it should best be decided on a case-by-case basis whether you need such insurance or not. For a single who only receives a smaller loan amount and pays off in low monthly installments, such insurance certainly makes only limited sense. A family man with several children who, for example, paid off a relatively high house rate is certainly well advised.
In any case, it must be remembered when concluding a residual debt insurance that, in addition to the monthly loan installments, the amounts of the insurance must also be paid on an ongoing basis. Accordingly, there is a higher financial burden here.
It may even be that banks insist on obtaining such insurance when lending . In this case, then you have little choice: either, the remaining debt insurance is completed or rejected the loan . The reasons for this can include, for example, lack of collateral .
Alternatively, however, it is also possible to look for another bank that may refrain from taking out the insurance.
Later payment of the first installment
Some banks already offer a later payment of the first monthly installment . If this is not the case, you can ask for it.
When concluding a loan agreement, it is usually the case that the first credit installment must be settled immediately. However, some banks have moved the payment of the first installment a little further back so that the borrower can only start repaying the loan at a later date.
Anyone who requires a loan but does not want to settle the first installment immediately, can confidently address the bank once for this possibility or specifically search for an offer that already includes this special agreement.
Expose a rate
If it is included in the loan agreement that a monthly installment of loan repayment can be suspended in a financial emergency, this is often a considerable relief for the borrower.
If it is already enshrined in the loan agreement that it may be possible to suspend a rate if necessary, this can be a considerable relief for the borrower in an emergency. For example, it is possible that the car suddenly goes on strike and a costly repair is pending. Or the refrigerator suddenly quits its service and it must be provided quickly for replacement. In these and similar cases, the ability to suspend a rate is often an absolute relief. So, the new device can be bought in peace and the car can be repaired and the following month you pay off the loan as usual. So there is no financial bottleneck here.
An amortization change offers greater flexibility in changing circumstances.
The amount of repayment does not necessarily have to remain the same. If the option to change the repayment has been contractually agreed, then it is possible for the borrower to change the repayment downwards or upwards accordingly.
If, for example, you have benefited from a salary increase, then it makes sense to increase the eradication. If, on the other hand, new offspring announces, it may be better to set the redemption amount lower. Here, the duration and the monthly installment are adjusted accordingly.
Accordingly, an amortization change offers the possibility of adjusting the amount of repayment depending on the life situation.