That's normal. You signed a contract where you take X money and promise to return X+Y money over N years. But instead, now you want to return only X+Z money when Z<Y. In some cases, it's ok, but it doesn't have to be. In fact, there could be loans where you just don't have such an option. E.g. if you buy government bonds, the government can't just give you back the money you spent and take the bond back. The fee is an intermediary option - you can do it, but for a fee. Sometimes, if they really want your money, they could give you the option for free - at least you'd pay Z, it's better than nothing. But it's no law of the universe that they must.