Forward loan
Loan with which a borrower secures an interest rate today for a loan in the future. The prerequisite for taking out a forward loan is the existence of a property that can be used as collateral. This type of loan is often used if the fixed interest rate of the existing loan is not due to expire for another twelve to 60 months, but the current interest rate level is to be secured. Interest surcharges are charged for forward loans depending on the length of the “deferral period”. No commitment interest is charged.
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