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TenDogsInATrenchcoat OP t1_jea1gjq wrote

Reply to comment by Dif3r in Is it normal to pay an extra 66% of a home loan back to your bank? by TenDogsInATrenchcoat

Thanks for the super detailed comment.

I'm lucky enough to be in a position where I can pay off a loan early, but from what I gathered, the bank in question will still charge you 38 years of interest, even if you pay it all back in say 20 years.

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NiftyJet t1_jeaatqf wrote

That is a ridiculous deal for you. If you pay the loan early, you shouldn't have to pay all the interest. That's the whole point of paying the loan early. I'd check with your lender. If that's what they're actually offering you, I hope you haven't signed this deal.

If you're able to pay it off early, at the very least get a shorter-term loan so you don't have to pay so much interest. This is predatory. Is this how things are done in Europe? It's insanely immoral.

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Dif3r t1_jea9tmh wrote

Ahh I guess that's where things go wrong. I can't say how it works in Europe or whether that's common or not since I'm in NA and know more about how it works in North America but are you able to shop around to other banks for mortgages that do allow early payments against the principal? Is this early payment thing even common?

At the end of the day the bank still needs to make their money but you still need to get the best deal you possibly can so don't get pressured into taking a loan if you have time on your side.

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