Valid Loan Amount
The loan amount is the current account balance of the loan account. This comes closest to the current remaining debt – the sum that the borrower still has to repay to the lender. Basically, this residual loan can be calculated on the basis of the available data. Again, an exact time must be set. For example, an annual statement can show the amount of the loan from last year. If new payments have been received in this case, this can often only be taken into account in the course of the new settlement. If necessary, the borrower also requests the current validated sum, for example, to make a rescheduling. Only then is it possible for a new lender to provide the residual value including fees and interest.
Exponential repayment of the loan
The respective amount of credit in question is the decisive factor for the entire loan. Over the entire term, the percentage of interest remains. What changes is their absolute height with each closing. For example, in a real estate and construction loan, the borrower pays fixed installments every month. As the interest burden decreases, the residual value is reduced. This increases the concrete repayment portion. These forms of credit are called exponential.
Guarantees and securities
Not only in the case of a proper course of a loan, but also in case of problems, the amount of the loan is significant. If, for example, a guarantor for the collateral collateral enters, in the case of an emergency he will pay for the amount of the loan in question and not for the full amount of the loan. This is ultimately based on the respective bank charges, as these are calculated on the basis of the total loan amount.
Also, the borrower has rights in terms of his collateral, which are related to the mortgage. For example, if the loan is repaid with 60,000 euros and the mortgage amounts to 120,000 euros, the mortgage may be released to a certain extent. The borrower has the option to apply for an assignment or reduction.