With the consent of the loan bank, the borrower may settle all the loans in advance, and calculate the interest according to the original contract interest rate and the actual service life, but may not repay part of the principal in advance.
Precautions for advance payment
1. Pay attention to the following matters when repaying the mortgage house in advance.
Banks are allowed to repay loans in advance at different times. Most banks can apply for early repayment after one year of repayment, and some banks can repay loans in advance at any time. Pay attention to the repayment time of the loan bank when repaying the loan in advance; The loan life of general mortgage is more than 10 years, during which it is inevitable for banks to adjust interest rates. If they are in the interest rate cut channel, it is obvious that the faster they adjust, the more cost-effective. Whether it is to repay the loan in advance or according to the contract, the mortgage registration must be cancelled after repayment.
2. It is not appropriate to repay in advance in the following circumstances.
Enjoy a discount of 30% to 8.5% interest rate when signing the contract. If you are currently in the interest rate reduction channel, the interest will be lower than the previous period if you implement it in time according to the latest interest rate; For buyers whose repayment period of equal principal has passed13, the repayment method in average capital will leave less principal and generate less interest. When the repayment period exceeds 1/3, the borrower pays nearly half of the interest, and most of the later repayment is the principal; In the middle period of equal principal and interest repayment, the principal in the monthly repayment amount increases month by month, and the interest ratio decreases month by month, so it is of little significance to repay in advance.
3. You don't have to pay the provident fund first.
Provident fund loans, do you need to pay off the provident fund loans before applying for early repayment of commercial loans? According to industry insiders, only the money in the provident fund account must be used to pay off the provident fund loan first. If it is other self-owned funds, it can be decided whether to repay commercial loans or offset provident fund loans first according to personal preferences and needs.