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Handy Definitions

Laufzeit

(Mortgage Duration)

The maturity or "Laufzeit" is the length of time between the payout of the mortgage and the end of the mortgage. This is usually 30 years in Germany. Normally the maturity is different from the fixed interest period. This is because in Germany customers usually choose a repayment percentage ("Tilgung"), and such a percentage rarely coincides with full repayment at maturity. Mortgages that are fully repaid at the maturity of the loan are referred to as "Volltilgung".

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