How the fuck can mortgages have a "prepayment penalty"?

That must be the most jewish trick ever, if I have a 5 year mortgage and what to pay it off in 2 years, how can this cost me extra? Lower risk for me, lower for the bank and they get more money

This is jewish levels I thought was not possible

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Get a better bank/lender

What language do you speak at home?

Holy shit you're retarded.

When you take a loan, do you even understand what you're doing? Why would the bank give you free money? Especially when the same amount of money in the future is worth less than it is today? The only reason people acting in their own self interest give away money is to acquire goods/services they want/need, or to increase their total value.

A loan is the bank selling you money for more money then they give you. They're willing to go slow and wait years, hence the interest rates, because they can sell more money that way. If you could pay them faster, well you wouldn't have really needed the loan with the interest rate and repayment timeframe that you got it at then would you?

The only way they make money or possibly even get to breakeven or a slight loss depending on inflation vs interest rate developments, is by by getting you to pay interest, and they wasted their time and money processing your loan, paying the employee that had to put up with talking to your mouth breathing retarded ass to set up the loan.

So they have that early repayment fee in there so tons of people don't just waste their time and money starting a loan, and then instantly repay it, leaving them out all the money it cost running a bank to service your loan.

So what you're saying is you want banks to just give you free money? Any Forumstards are unironically fucking retarded.

>If you could pay them faster, well you wouldn't have really needed the loan

you know someones finances can changes over the years right? The mortgage payment is just the minimum

>So what you're saying is you want banks to just give you free money? Any Forumstards are unironically fucking retarded.


Lets say I pay 1000 per month over 5 years, then want to repay. You seriously tell me it cost them 1000*12*5 to "service a loan" which is literally updating a database and run a credit check?

kek

>t. kike sympathizer

agreed this post and the replies to your post are disgustingly childish.

Thanks for letting me know I was right about you being fucking retarded.

Entitled fucking poors, complaining about Jews cause you don't understand even the simplest parts of the most basic financial service.

Bye bye stupid poors, have fun being poor and stupid.

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you failed to answer any argument but ok

What a stupid zooming nigger.

Get a mortgage you retarded freak. Any extra you pay can easily go towards principle.

i think most people can understand this. but it doesn't change how hideously kiked it is.

You do understand that most of that payment goes to principal (repayment of the money you borrowed). Also are you American? Typically there is escrow included in the monthly payment to cover property taxes and home owners insurance.

You can just pay them with treasury bills set to mature are the required loan payment dates at the required loan payment rates.

Dude who actually understands how money works DUNKS on retards using FACTS and LOGIC, and is even nice enough to explain to user why he is wrong (but he is still butthurt)

The loans are sold off to investors such as FNMA and FHLMC. When you pay off your loans early, the actual ROI is lower, so they factored in gay shit such as prepayment penalty.

yes, so why can't i increase my principal? They can loan out the money to someone else faster then

im in europe

why would you pay it off early? theres mo reason to do that

>So what you're saying is you want banks to just give you free money?
How much do I charge the bank for getting the opportunity to use my deposit as leverage?

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maybe i have a lot of money I would like to use to avoid paying interest? Maybe I want to take out a loan for something else? Maybe I want to avoid interest rate hikes in the future?

Holy fuck you guys get a financial advisor you are going to ruin your fucking lives you 80iq daft dropkick cunts

They would have to find a new borrower, process a new loan...incur expenses to make a new loan. And, at the end of the day, they exist, like any business, to make a profit. If the total interest you will pay if you stick to the original terms of the loan exceeds the prepayment penalty, pay it off now, and move on with life. Otherwise, keep making the payment that you agreed to when you got the loan.

Don't post South Africans here. Their entire outlook and way of thinking is corrupted by racism.

>what you’re saying is you just want free money
Yes

I didn't even read your whole post but
>what is fractional reserve banking

what is the "expense" of opening a website UI, updating like 4 fields in a database and schedule a payment?

Im not saying it's free, but now fucking way it can cost say 40k

I've never known anyone that's actually had a mortgage with a prepayment penalty, my 30 year conventional certainly does not have one, although prepaying on a 3% mortgage is now actually retarded