Who announces a loan ahead of schedule, the bank must pay compensation for lost interest. In determining the compensation, the banks but often expect their favor. can create previously clarity so save money.

The early redemption of loans with fixed interest rate will probably employ people until doomsday. In the past, there was a question whether the borrower can get out of the contract before the expiry of the fixed interest rate. Or involved the consideration of how the bank must calculate the compensation. Today is about the problem that capital market interest rates, the bank has to be used for the calculation of the prepayment penalty, and to consider how they must take into account the right to unscheduled. The two aspects are foreign to most private individuals. But this is about money. Therefore, it is useful to clarify the question of separation directly when taking pictures of the mortgage. This shows the following case.

Five years ago the bank paid out a loan of 300,000 euros. The nominal interest rate is 5 percent per year, and repayment was adjusted to 1 percent. The terms have been agreed for ten years so that the contract is valid for 60 months. The monthly payment for interest and principal is 1500 euros. The remaining debt is 282,998 euros. The open payment stream consists of 59 installments of 1,500 euros and the final installment of 262,679 euros. In the scheduled remaining debt of 261,179 euros is included.

Interest is not the same interest

When calculating the compensation, the outstanding cash flow is discounted. The rates are not, as was customary for some time, discounted at a single interest rate, but with 60 different interest rates. In technical terms, this method maturities discounted because the interest on the capital markets is not uniform, but depend on the investment period. For deposits with a maturity of one month, there is 3.6 percent, for example at the moment. For deposits with maturity of ten years currently, 4.25 percent be paid. According to the remaining amortization schedule is divided into 60 installments, and the individual payments are discounted at different rates. The difference between the sum of the present values of 60 and the remaining debt is the required compensation, amounting here to around 10,777 euros.

Behind this figure hides an average interest rate of 4.2 percent for all periods, and this mixed interest rate is now the central point of contention with credit detachments. Cause of some of the acrimonious disputes is the fact that in Germany there is no binding interest rate statistics, but trust each bank on their database. There are severe discrepancies. A look at the course pages of major newspapers shows that interest is not the same interest. Since there are government bonds and mortgage bonds, and the differences are 10 to 20 basis points.

Set the record straight

But there are also – and that was the trigger for a ruling by the Federal two years ago – the controversial Pex indices. The statistics of the Bundesbank is based on actual mortgage transactions in the stock market, but in the Pex also offers will be considered, for which there were no buyers. Therefore, the Pex yields are on average 10 basis points lower than the actual income from securities. These differences go on longer maturities powerful into the money because it is not indifferent to indicate whether open cash flows are discounted at 4.2 or 4 percent annually. In this case, the difference is just under 2,500 euros.

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He was once a celebrated manager at BMW and Volkswagen, Bernd Pischetsrieder now stands in Munich in court. He is said to have evaded by clever reclassifications of loans more than 200,000 euros in taxes. The 63-year-old is not aware of any guilt.

At no time has Bernd Pischetsrieder gives the impression of a delinquent; and certainly not that he could have evaded taxes. Unfazed by the allegations made against him, the former CEO of BMW and VW talks before the regional court of Munich on his way to submit a tax return; just as it probably makes every taxable person who can not see through the trials and tribulations of the law. No guilty feeling he was aware, of the 63-year-old former auto executive, said Monday in court. The performance is – as you know it from him – controlled, quiet and utterly confident.

The conviction of innocence runs deep. For Pischetsrieder it can arrive on the process. He struck a deal made with prosecutors in advance of a process. Certainly not let it be impressed by the applied by the Munich public prosecutor in many cases Methodology numbers or publicity appearances in court. Of 200,000 euros is the speech he should pay to close the case. The games he did not want to do with it
unknown a few days before the start of negotiations

Unlike other methods, the criminal case and the scheduled trial date just last week it was announced. For years, determined the prosecution. In May, they already began to accuse. Pischetsrieder has to fear a fine or even a suspended sentence. The verdict is expected on Tuesday. After the examination of witnesses on Monday once again the tax consultant from Pischetsrieder and the tax inspector of the Tax Office Rosenheim to testify as a key witness on the following day. The facts are conceivably complicated.

The prosecution alleges that Pischetsrieder to have evaded a total of 234,600 euros in taxes between 2001 and 2003. The owner of numerous properties as in Munich, Chemnitz and am Chiemsee have transferred including a loan from his well-occupied property in Breitbrunn am Chiemsee to other rented or leased properties and thus debt interest charges. He had so false or incomplete information and paid too little tax. He has, according to prosecutors now paid, but at the same time challenged the tax assessment notices the disputed loss.

“Not the slightest concern”

Frankly gave Pischetsrieder to justice but also to understand that he would have acted differently, he would have even guessed to what all this would lead. “I had not the slightest concern,” he was referring to, the tax authorities have his approach nevertheless still approved for six years. “I did not come up with the idea of committing a crime.” How should a simple engineer who build cars that know he countered the allegations?

Intimidated he was not to be. Elegant in dark blue Club jacket with silver buttons – so familiar to him – dressed, spoke Pischetsrieder loose and in great detail he about things that they would not be punishable the most normal thing in the world. “Host me”: Since then already be typical mischievous eyes fall again after a statement of bookings on current accounts over to the prosecutor, he smiles with a wink and a nod, as if to say, born in Munich. In German: Do you understand me (but connected to a dogmatic tone)?

Loans rescheduled

To slow Pischetsrieder was not. not internalized the rules in court that he wanted the witness – to interrupt in the middle of his testimony, but was not stopped in time before an imminent Back whistle of the judge from his two flanking lawyers – the tax inspector from the Tax Office. An official of the Tax Office Rosenheim Pischetsrieder is not the “08/15-taxpayer”. On whose initiative it is, after all, come to the indictment. He testified that there had not been without the rescheduling a tax reduction.

Even so, the accused is anything but 08/15, not only because he has real estate at home and abroad, as well as an extensive vintage collection. After Pischetsrieder was suddenly resigned because of the expensive debacle at the British SLichenRover in early 1999 at BMW as CEO, he took over the top job in 2002, succeeding Ferdinand Piech at Volkswagen. In the dispute with PiĆ«ch, he had to give the post in 2006, a short time after his contract has been extended. To avoid high severance, VW has not canceled the contract. Pischetsrieder remained virtually unchanged terms of approximately 3.5 million euros annual salary as a “consultant” in the company.

“My boss sent me mostly somewhere else”

Indeed it is unclear in what form and how comprehensively he advises VW to this proud salary. In April 2012, the contract ends. did not want to talk about Pischetsrieder at the edge of hearing. Asked how often he was sitting in his office in Wolfsburg, he only replied, again with a mischievous smile: “My boss sent me mostly somewhere else.” What is meant VW CEO Martin Winterkorn, Pischetsrieder’s successor.

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