How Good Is this loan ?

[ronkeen]

I have finally found a common language with this forum again. And this language is :


I never taken loan in my life, please tell me is this loan fishy or good deal ?

Advertised Total yearly interest 2.5 % ( 2.25 % interest + negative EURIBOR + 0.25 Banks's extra interest fee )
Loan sum 160 000 EUR ( Lumpsum or whatever is called )
Loan Period 20 years.
Follows below the repayment schedule for the first three years.
Questions:

Is this loan a good deal, considering I want to pay in full the lumpsum by 3 years. ?

At the first months you pay higher percentage towards interest, does this mean one who intends to repay the loan within 3 years actually pays effective loan rate higher than 2.5 % ,.... maybe realistically 4.4 % or so. And the advertised loan rate of 2.5 percent only applies when you pay for the whole 20 years.

They say at any point you can pay the remaining of the lumpsum and you are out of the loan.

[WTFH]

Are these your own figures, because if it was a normal loan, they are not correct.

[ronkeen]

Are these your own figures, because if it was a normal loan, they are not correct.

The pictures show the actual repayment schedule the bank sent me. It is a mortgage loan.

[WTFH]

It looks wrong. I'd expect this:

	Balance	Payment	Interest	To Loan
20/10/2021	160000	830.99	333.33	497.66
20/11/2021	159502.34	830.99	332.30	498.69
20/12/2021	159003.65	830.99	331.26	499.73
20/01/2022	158503.92	830.99	330.22	500.77
20/02/2022	158003.14	830.99	329.17	501.82
20/03/2022	157501.33	830.99	328.13	502.86
20/04/2022	156998.46	830.99	327.08	503.91
20/05/2022	156494.56	830.99	326.03	504.96
20/06/2022	155989.60	830.99	324.98	506.01
20/07/2022	155483.58	830.99	323.92	507.07
20/08/2022	154976.52	830.99	322.87	508.12
20/09/2022	154468.40	830.99	321.81	509.18
20/10/2022	153959.21	830.99	320.75	510.24
20/11/2022	153448.97	830.99	319.69	511.30
20/12/2022	152937.67	830.99	318.62	512.37
20/01/2023	152425.30	830.99	317.55	513.44
20/02/2023	151911.86	830.99	316.48	514.51
20/03/2023	151397.35	830.99	315.41	515.58
20/04/2023	150881.78	830.99	314.34	516.65
20/05/2023	150365.12	830.99	313.26	517.73
20/06/2023	149847.39	830.99	312.18	518.81
20/07/2023	149328.59	830.99	311.10	519.89
20/08/2023	148808.70	830.99	310.02	520.97
20/09/2023	148287.72	830.99	308.93	522.06
20/10/2023	147765.67	830.99	307.85	523.14
20/11/2023	147242.52	830.99	306.76	524.23
20/12/2023	146718.29	830.99	305.66	525.33

...etc

If there's no penalty for early repayment, then it should be the equivalent of 2.5% per annum. Not 2.5% divided over 3 years, etc.

[Schnurdle]

Interest is being applied daily. Different months have differing numbers of days in.
Looks like a standard mortgage repayment plan to me.