May 2019 – skepticker.org
 

Month: May 2019

Amount of prepayment penalty for property loans

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The amount of the prepayment penalty results from the amount of the prepayment penalty in connection with the new loan and the new loan. Unfortunately, your credit does not have a sufficient chance of being successfully revoked. Many consumers still pay very good interest rates (up to 10%) on their consumer and real estate loans at a time of very low interest rates. This significantly reduces your residual debt or allows you to convert into a lower-yielding bond deal. The cancellation jokers also apply to already fully repaid bonds.

Legally effective repayment of a loan

Legally effective repayment of a loan

If you have terminated your loan relationship prematurely and a prepayment penalty has been charged, this may also be withdrawn in the case of unlawful revocation instructions in the contracts (subject to the restriction). In the case of the legally effective repayment of a loan by rescission, BuyNer may not charge a prepayment penalty. For consumer and real estate loans, the chances are high that your contract will include illegal termination clauses.

This gives the opportunity, with the support of the revocation joker, to end the loan relationship early. The termination of a loan is often only useful if the loan is terminated by a lawyer / withdrawn. In our online form you enter your contract data. Resignation after 10 years and change to bond with 2% pa

The withdrawal from an expensive real estate loan and its conversion into a more cost-effective financing option, you can save several thousand euros. A successful resignation saves you the prepayment penalty. You will receive all or part of the prepayments already paid. In our online form you enter all relevant information about your credit.

The partner firms will then investigate the revocation possibilities of your loan and calculate the possible savings for you. If the partner company refuses to handle your case after the initial examination, you will not incur any additional expenses. This eliminates further efforts for you. In this case, you would only have to pay a possible franchise from your health insurance company – a manageable undertaking.

Pre-financing of an existing owner-occupied property

Pre-financing of an existing owner-occupied property

Unfortunately, your credit does not have a sufficient chance of being successfully revoked. Unfortunately, your credit does not have a sufficient chance of being successfully revoked. Note: In order to be able to provide our placement service free of charge, it must be a consumer loan (not a real estate loan) or the pre-financing of an existing owner-occupied property (not new construction by you).

This also applies to the existing legal protection insurance. Note: In order to use our placement service free of charge, you must either take out legal expenses insurance with HuK or, before 1 January 2016, an Austrian lawyer’s insurance or, before 1 January 2015, other legal expenses insurance. We can only provide our services without the requirement for a legal expenses insurance (or without existing legal expenses insurance) and / or the condition for own use (in the case of a real estate loan) if you participate in a savings loan during the period from Nov. 2002 to Mar. 2008 have received a loan from the savings bank and the termination instructions in the savings loan agreement, the announcements “The period of notice begins the soonest” and “audit period in detail” included.

The implementation takes place at the headquarters of JAAS in Austria. In order to process your case, we need to forward the information you provide to our partner lawyers. Do you agree that we will save your information and forward it to our partner lawyers? Many consumers still pay very good interest rates (up to 10%) on their consumer and real estate loans at a time of very low interest rates.

This significantly reduces your residual debt or allows you to convert into a lower-yielding bond deal. The cancellation jokers also apply to already fully repaid bonds. If you have terminated your loan relationship prematurely and a prepayment penalty has been charged, this may also be withdrawn in the case of unlawful revocation instructions in the contracts (subject to the restriction).

In the case of the legally effective repayment of a loan by rescission, BuyNer may not charge a prepayment penalty. For consumer and real estate loans, the chances are high that your contract will include illegal termination clauses. This gives the opportunity, with the support of the revocation joker, to end the loan relationship early. The termination of a loan is often only useful if the loan agreement is terminated by a lawyer / withdrawn.

In our online form you enter your contract data. Cancellation after 10 years and change to credit with 2% pa Cancellation Policy: Save by revocation: Enter all relevant information about your credit in our online form. The partner firms will then investigate the revocation possibilities of your loan and calculate the possible savings for you.

If the partner company refuses to process your case after the initial examination, you will not incur any additional costs. This eliminates further efforts for you. In this case, you would only have to pay a possible franchise from your health insurance company – a manageable undertaking. Unfortunately, your credit does not have a sufficient chance of being successfully revoked.

Unfortunately, your credit does not have a sufficient chance of being successfully revoked. Note: In order to be able to provide our placement service free of charge, it must be a consumer loan (not a real estate loan) or the pre-financing of an existing owner-occupied property (not new construction by you). This also applies to the existing legal protection insurance. Note: In order to use our placement service free of charge, you must either take out legal expenses insurance with HuK or, before 1 January 2016, an Austrian lawyer’s insurance or, before 1 January 2015, other legal expenses insurance.

We can only provide our services without the requirement for a legal expenses insurance (or without existing legal expenses insurance) and / or the condition for own use (in the case of a real estate loan) if you participate in a savings loan during the period from Nov. 2002 to Mar. 2008 have received a loan from the savings bank and the termination instructions in the savings loan agreement, the announcements “The period of notice begins the soonest” and “audit period in detail” included.

The implementation takes place at the headquarters of JAAS in Austria. In order to process your case, we need to forward the information you provide to our partner lawyers. Do you agree that we will save your information and forward it to our partner lawyers?

How to renegotiate your mortgage?

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For several months, mortgage rates are down. A few years ago, a mortgage over 20 years proposed a rate approaching 5%. Today, the same product is available at a rate of up to 1.6%. An evolution that justifies the increase in renegotiation requests from

requests for renegotiation by borrowers who wish to be able to enjoy these much more attractive rates. “The low rate effect continues, requests for renegotiation of credits flock again,” said Mael Bernier recently, director of communication of Meilleurtaux Le Parisien newspaper.

3 basic conditions before launching

Above all, three mandatory criteria must be met in order to access a renegotiation of a mortgage. First, be in the first half of the credit. That is, people with 20-year credit should be within the first 10 years of repayment. Next, it must be verified that there is at least 0.70 to 1 point difference between the credit rate contracted and the rate currently charged.

For example, current rates are around 1.60%, so the current credit will need a minimum rate of 2.60% in order for renegotiation to be possible. Finally, the outstanding amount must be at least 70,000 euros. If these 3 conditions are met, then it is interesting to go further in the process.

Convince your bank to renegotiate your home loan

 Convince your bank to renegotiate your home loan

Since 2008, every individual is free to ask for the renegotiation of his mortgage with his bank. However, no institution is obliged to access this type of request, which is why preparing your application is essential for the smooth running of this type of operation. The first reflex will be to contact his bank to express his wish. The institution can either refuse to propose a solution or propose a new rate.

This proposal will only be valid for one time. A period during which it may be interesting to inquire with other banks to find out what is proposed and thus compete to convince the lending institution to start making a more interesting offer. Then free to the particular to accept the offer which is made to him or not.

Pay attention to costs

money costs

When the renegotiation request ends with the lending organization, two scenarios can be put in place. The amount of the monthly payment may remain similar to that practiced with the previous rate, it is then the repayment period of the credit will be reduced. The amount of the monthly payments can also be reduced in order to regain purchasing power, it is then the duration that remains the same.

However, this type of operation generates action and changes in the terms of credit, and therefore costs. The latter relate to early repayment fees, the introduction of new guarantee fees, application fees, brokerage fees, etc. These additional costs will be, for example, greater if a mortgage is used as a guarantee.

To limit spending and ensure that the game is worth the candle despite the gap between the previous rate and the new practice, requesting a commercial gesture to the bank to reduce the bill can be a good idea. In fact, the whole operation is based on what the banking establishment will be able to propose in order to achieve a win-win compromise, when we talk about renegotiation, so it’s not just about the rate, but all the agreement that will govern the terms of the new credit that will be put in place.

And if the bank refuses?

When the bank refuses to offer a more attractive rate or is not sufficiently inclined to propose a suitable request to both parties, it is always possible to go to another institution to make a credit redemption.

I simulate a credit redemption! to be reminded

The repurchase of credit makes it possible, on presentation of a file of request, to regroup all the outstanding loans in order to benefit from more interesting rates. In this way, the duration and the amount of the monthly payments are recalculated according to the applicant’s financial possibilities. Only one monthly payment is taken each month, because all outstanding debts are now grouped within the same loan. What’s more, the purchase of credit can also be an opportunity to apply for additional funding to realize a new project.

Simply put, buying a loan is like renegotiating one’s mortgage at a better rate, but also including other outstanding loans (such as a consumer credit for example) to get a simplified refund. and more advantageous.

To make a loan redemption, a request for a file study must be sent to an organization that performs this type of operation. It should mention current loans and other debts, and provide evidence of its financial situation. The organization then makes a proposal that needs to be studied and then accepted or rejected. It is often interesting to make several redemption requests to compare different proposals. Once one of them accepted, it is the professional in repurchase of credit which will take care of all the steps.

The opportunity to review his insurance-borrower

 The opportunity to review his insurance-borrower

When you start negotiating, take a look at your creditor insurance to see if you can get a better deal. Indeed, it is possible to renegotiate the borrower’s insurance each year on its anniversary date and also for each new credit or repurchase of credit. Thus, a renegotiation of mortgage loans is also an opportunity to renegotiate its insurance and realize between 30% and 50% savings on the tariff of the latter. Be careful however, the new insurance contract must offer the same guarantees as the old one and its price will be influenced by the age and state of health of the applicant.

Back to school, the perfect time to start!

 Back to school, the perfect time to start!

If you are planning to start renegotiating your mortgage, back is the perfect time! “We are in the summer period and the banks have few people in the back office, they deal first and foremost with the new files, those that lead to a purchase,” explained recently Mael Bernier in Paris. Moreover, the end of the year is approaching and if your bank has not achieved its objectives for the year it will prefer to negotiate rather than see you leave. “On average, in the first half of 2016, the files we renegotiated saved € 29,500,” explained Maël Bernier. Knowing that rates have dropped even more since then, there is no reason not to try one’s luck!

Special Term Loan | Cancellation loan

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Cancellation loan for special cancellations

Cancellation loan for special cancellations

In summary, long-term loans are ten years after the full disbursement of the loan according to 489 BGB resolved without additional costs. For special private reasons such as divorce, illness, unemployment, over-indebtedness, relocation or sale of the property, the BGH is sufficient to terminate a mortgage loan. In addition, I am justified in the concern, in which time context, for example, the beginning of unemployment or illness cases with the Aus?

So how long does the illness / work logistics have to last or is it sufficient, for example, to receive confirmation from the employment agency that one of the borrowers has registered as a “jobseeker”?

Special right of termination and withdrawal for forward loans

Special right of termination and withdrawal for forward loans

Again and again it happens that the customer wants to cancel an already closed forward transaction. Interest rates have fallen in the past time often contrary to customer expectations. Therefore, many customers and customers ask the question: Do you now have to accept the term loan on the specified date and interest? Are there any ways to cancel the expensive term loan transaction?

What are the options of the customer to terminate a term loan? First, the sobering news: The concluded loan agreement is binding on both the lender and the borrower. The forward loan can not cancel the house bank without just cause, because, for example, the lending rates on the capital market have risen.

On the other hand, this also means that you, as the client, do not have the option of having a cheaper loan for refinancing after signing the contract. You can cancel the loan within this time. Legally, they are then placed in the same position as if they had not closed the credit agreement. This gives them, as customers, the chance to refute premature decisions.

The Lessor is required to explicitly assign her as a customer or customer in the course of a contradiction instruction on this occasion. In practice, there have been a large number of court decisions in the past in favor of consumers in connection with the cancellation order. Accordingly, some provisions in the loan agreements have been invalidated with respect to the instruction of opposition. The legal consequence of this was that in the case of credit agreements with incorrect cancellation policy, the deadline was extended indefinitely.

Some borrowers have used this opportunity in the past. The revocation options for debtors had meanwhile shrunk sharply. The fact is that the cancellation of a term credit with high fees at the beginning of the repayment period is accompanied. Here, a distinction is made between the terms “non-acceptance compensation” and “prepayment compensation”. Decisive for the success of both companies is the time of expiry.

However, if the termination occurs after the loan has been disbursed, but within the fixed interest period, BayernLB is entitled to a so-called “prepayment penalty”. The prepayment penalty is a compensation for the loss of interest that BayernLB could have received for the remaining time. For both the early repayment fee and the non-subscription fee for a longer remaining loan period, the expenses can be substantial.

Therefore, it is advisable to calculate exactly here as a client. For the calculation of the advance payment is z. For example, an Excel calculator is available for the Stichting Warmentest. Therefore, consumers should in principle refrain from canceling within the commitment period and the first 10 years. Borrowers are legally entitled to a special right of termination under the following conditions: Nevertheless, BayernLB has the right to demand a prepayment penalty for these reasons as well.

This means that in practice, customers generally have to bear considerable expenses for these termination options. Notice of termination and if the loan has not yet been repaid in full, the notice can be made. Of course, this only applies as long as no new fixed-interest agreement has been reached with the house bank. As a rule, your bank will submit a new takeover offer before the loan commitment expires.

If this takeover offer fails to materialize, BayernLB may pay interest on its residual debt as of the date of expiry of the fixed repayment term in the amount of the EONIA interest rate plus a full spread of around 6 percentage points. You as a customer are well advised not to allow this process. Another important point for the termination of a term credit is § 489 BGB.

According to 489 BGB, the borrowers have the right to limit their term loan after 10 years. The credit agreement must not have been changed within this time. The period starting with the complete payment of the loan amount. The client must comply with a period of grace of 6 months after 10 years. In fact, the termination is effective after 10.5 years.

This often allows consumers to save a lot of money. After expiry of the period of 6 months, the client has two additional calendar weeks to make the remaining claim available to the lender. In this case, the reduction of the cut-off period is not required. If he does not comply with this obligation, it is assumed that the termination did not take place. Especially with forward loans, the question arises when the legally binding 10-year term begins.

It can take several years between signing the contract and issuing the term loan. So far, banks have always believed that the period does not start until the loan is fully paid out. If the term loan is an extension of an existing form of financing with the same lender, it is not the payment date but the conclusion of the contract for the beginning of the notice period (judgment of 14 September 2015, Az. I-1 O 68/15).

The consequence of this judgment is that consumers who have taken out a term loan with the same credit institution after their initial financing can terminate their contract ahead of time. In the case of consumers who, in turn, have taken out a term loan from another credit institution after their initial funding, it is unlikely that this provision will apply. At the end of 10 years after issuance of the term loan, the borrowers have a legally prescribed termination right.

Because the expenses can be significant, borrowers should consider the following options: Wrong Cancellation Policy: Many debtors have in the future made use of a misstatement in the term loan loan agreements, which is a valid legal opinion. A wrong revocation offers the borrowers a good basis for negotiating the reduction of the early repayment penalty. Another way to avoid a prepayment penalty would be for the acquirer to take the term loan business when buying a property.

However, this only works if BayernLB has approved the change of debtor. The creditworthiness check also includes expenses which BayernLB will have paid in the form of fees. After the effective date of the termination, the term loan must be repaid within the term of at least 2 calendar weeks. After expiry of the deadlines, the loan is deemed not to have ended.

In general, the most favorable for the borrower regular repayment option is assumed. Therefore, the lender should expect the highest possible contractual repayment. The lender should therefore accept the highest possible contractual repayment. In addition, it can be assumed that all special repayments of the term loan will be fully utilized. From the lost interest income, the lender must settle the income that he would receive for the investment of the assets in the same period.

However, because part of this billing document is negative, it does not necessarily benefit the borrower. If the term loan is terminated properly, no prepayment penalty expenses will be incurred. However, when switching to a new lender, the borrower must raise the applicable mortgage liens.

In the case of assignment of the liens, the cadastre indicates that the liens of the original financing bank have been transferred to the new creditor. A cancellation of a mortgage fee is not sensible for cost reasons. The cancellation of a basic fee is chargeable. Instead of deleting the mortgages, the client may grant a license to cancel or grant or have it issued by the registered donor.

This ensures that the land charges have been closed and are therefore no longer used as collateral. This allows the client to easily reset the mortgages and reuse them at a later date for financing at any time. In principle, the old lender may overstate the workload and associated expenses for changing the loan.

It should be noted that in most cases it is cheaper to rewrite the securities than to cancel a mortgage and re-register. Mortgages can be relatively easily transferred to a new borrower. This results in between 0.1 and 0.2 per cent, depending on the amount of land charge. As part of the rescheduling, the land registry must be reallocated to the new lender.

For this purpose, you authorize the new lender to obtain an assignment of the land charges. This happens then with a notarial contract between the previous and the new lender. Today, in the vast majority of cases, a land charge is registered because it is transferable. If your previous loan is secured by a mortgage, it is not possible to transfer it to a new lender.

Example 1 Term credits end after a 10-year repayment term: A customer has a term loan with a fixed interest rate of 15 years at AdBank. This would no longer be necessary after 12 years, as capital market interest rates have meanwhile dropped further. Thus, the client can terminate his term loan with a term of 6 calendar months in accordance with special tax law § 489 BGB in writing.

The borrower is advised to check the current interest condition using a comparison portal. In addition, he should also ask his previous house bank for a follow-up financing. Then the debtor must consider whether it makes sense to switch to another borrower. A sample letter to you about the end of the term credit: Ladies and gentlemen, according to 489 BGB para. 1 no. 2 there is the right to terminate a loan agreement after 10 years.

In this case, the customer has no special right to terminate the loan agreement. Section 490 BGB (2) sentence 2 no. 2 sets out the requirements for a special termination right. He can prove the loan agreement by a lawyer to verify a false termination instruction. Under certain circumstances, this can lead to a special termination.

Otherwise, the customer has only the third option to conclude a amicable termination of the loan agreement with the house bank. In the event of early repayment, BayernLB will charge the buyer a commitment fee. The early repayment penalty amounts to approx. EUR 39,327 (no unscheduled repayments agreed). As a rule, the termination of the forward loan will not pay off economically. The term credit business of a debtor has a term of 5 years.

For personal reasons, the client wants to sell the property. What is the prepayment penalty? If there is a special option to terminate the sale of the property, BayernLB is nevertheless authorized to charge a prepayment penalty. For example, the prepayment penalty in the example with an effective interest rate of 2 percentage points and no unscheduled repayment options amounts to approximately EUR 8,061. If an additional annual unscheduled repayment of EUR 100,000 has been decided, the early repayment penalty amounts to approximately EUR 6,113.

The amount of early repayment depends on a number of credit factors such as loan amount, effective interest rate, installment amount, time to maturity and special payment options. Based on this information, the house bank determines its lost interest yield. From these, the house bank must settle its risk and material costs. In addition, the principal bank must note that it can invest the capital elsewhere in good time.

Example 4 Rescheduling of a mortgage: A debtor holds a term loan of 200,000 euros from the BANK. The loan is secured by a mortgage in the amount of 200 000 EUR. The loan is terminated on time by the customer after 10 years in order to benefit from a more advantageous follow-up financing with B-Bank.

What can the client do? He authorizes the B-Bank to obtain an assignment of the land charges. The mortgage interest is transferred from their former house bank to their new house bank. Due to the fact that the B-Bank does not request the entire mortgage, a partial cession of 150,000 Euro is recommended.

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