09/12/2007
In "land credit" contracts, the borrower has the legally-assured option of early repayment of the home loan; but generally, even in ordinary contracts, that possibility is foreseen. The borrower may decide, therefore, at a certain point in the repayment plan, to close out the contract and repay the remaining capital, on which obviously he will no longer pay interest.
Given this loss of earnings, the bank could, if the contract so stipulates, demand compensation (a penalty). According to a