Slightly off topic, but maybe good to know.
Could be different abroad, of course, but in Belgium, paying capital back earlier (out of schedule) is considered a breach of contract and you'll generally have to pay 3 months of interest on the amount paid back earlier as compensation. The damage for the bank is that it loses part of the profit of its' investment (Yes, a loan to you is an investment for the bank, and they make profit out of it; generally, you have to pay more interest than the bank has to pay on that amount - when interest rates are low, try to get a loan on an interest rate that's fixed for the entire duration of the loan). Also in Belgium, you don't get tax benefits for the amount you pay back out-of-schedule. Before you'd consider doing such a payback, you'd first have to make some caculations to see if it's profitable or not.
Bookmarks