In addition to the loans they offer, more and more banks often offer the so-called special repayment right – of course, only in connection with an interest premium. Only: Is a loan with a special repayment really worth it? Unfortunately, as so often, it depends on the loan.
Early repayment of the loan
In principle, a special repayment is also possible for a loan without an interest premium in the form of early repayment of the loan. However, this is hardly worth it, because early repayment of a loan causes the bank to incur losses in the form of interest and loan fees, which it adds to the repayment.
At first glance, the loan that was repaid is still cheaper than repaying it by the end of the term, but the surcharges make it more expensive to the extent that the difference between the actual loan amount to be paid and the remaining repayment at a surcharge only increases turns out very small.
This can be dealt with by agreeing on the special repayment right from the start for a loan with special repayment, because then special repayments can be made without a premium. However, the banks can again pay for this risk of loss with the interest premium. Here the premium is not due on the special repayment, but on the actual loan interest.
As a rule, this interest surcharge is 0.1 – 0.2% – this means: Would the effective interest rate for a loan without special repayment, e.g. B. 5.5%, a loan with a special repayment would result in an interest premium of 5.6% or 5.7%. With a loan of 100,000 USD, this amounts to additional annual costs of 100 to 200 USD.
The banks like to refer to the tax deductibility of these additional costs in the form of increased credit costs, but in practice this is pure nonsense, since someone who wants to claim the credit costs against the tax has no interest in paying it off anyway.
Loan with a special repayment
A loan with a special repayment with an interest premium is generally not worthwhile. A special repayment presupposes that in addition to the normal expenses and the cost of the loan, enough capital can also be saved for a special repayment.
However, this is only the case if the cost of a loan is below average, e.g. B. due to low rates and interest rates, and more than 20 – 40% of household net income (which remains after deducting all monthly costs) are available for savings each month. However, if the cost of credit is so low, there is little motivation to pay it off early due to the lack of necessity.
A loan with a special repayment is worthwhile if the loan costs turn out to be high to high – only then is sufficient capital rarely available each month, which can be saved and used for repayment. The interest surcharge for a loan with a special repayment option makes the loan even more expensive, so that the scope for saving capital is even reduced.
In addition, especially in times when interest rates are low, when the key interest rate is at a very low level, an interest premium makes the loan more expensive than in times when high interest rates have to be paid.
A loan with a special repayment only really makes sense for the borrower in one single case: If a high additional income can be expected during the loan term with which a special repayment can be made. This can be an inheritance to be expected, but also if a (fixed) promotion may be pending or the partner e.g. B. should go back to work after a planned baby break or can be expected with an interest-negative period (interest rate decrease) and thus the loan costs decrease in all cases.