The extinguishing count is the document that can be requested from the bank to know the characteristics of the residual debt in the event of early repayment. Precisely this operation is more convenient today than in the past, as the penalties to be paid to the banks have been lightened. The calculation of the extinction count takes into account the legislation in force and offers the consumer a framework of the expenses to be incurred to complete the repayment of the loan or to extinguish it in advance with respect to the deadlines set by the contract.
The extinct count is a document divided into two parts
The first part is dedicated to the calculation of the residual capital , or rather the portion of the sum received on loan that has yet to be repaid to the bank at the time of the request for early repayment. However, the interest that should not be paid is deducted from the residual debt: the great advantage of early repayment is the opportunity to not have to pay interest on future installments. In particular, this choice becomes advantageous in the early stages of repayment when the depreciation has been calculated according to the “French” method, which concentrates the payment of interest in the first installments. If you wait too long, the return will become less and less convenient.
In any case, it is the first part of the extinction of a mortgage to give you a clearer picture of the amount to be repaid
To this, the same count adds the possible penalty to be paid to the bank, a payment that cannot exceed 1% of the capital yet to be repaid. Moreover, for almost 10 years now (Bersani Law entered into force in 2007), banks can no longer ask for penalties for the early repayment of a mortgage.
The second part of the extinction statement, on the other hand, describes in detail the methods by which early repayment must take place. The main information that you will find in this section of the document is on which to make the payment , the reason with which to indicate the payment and the last date after which the data contained in the same extinctive count are no longer valid. This is because the count relates to a specific moment in the repayment period: if it expects after having requested it, the framework of the financing will have changed.