Which of the two repayment methods of provident fund loans is better?
1. Matching principal and interest: The matching principal and interest repayment method is to repay the same amount of loans (including principal and interest) every month during the repayment period, so that the monthly repayment amount is fixed, so that the expenditure of family income can be controlled in a planned way, and it is convenient for each family to determine the repayment ability according to their own income.
2. Average principal: the repayment method of equal principal is to repay the principal in equal amount every month, and then calculate the interest according to the remaining principal. Therefore, in the initial stage, due to more principal, more interest will be paid, so that the repayment amount will be more in the initial stage and will be reduced every month in the subsequent period. The advantage of this method is that the down payment is large and the interest expense is reduced, which is more suitable for families with strong repayment ability.
Matters needing attention in repayment of housing provident fund
1, don't forget to inform the rental obligation after the loan. When renting a mortgaged house during the loan period, the lessee must be informed of the mortgage facts in writing.
Don't forget to cancel the mortgage after the loan is paid off. When you have paid off all the loan principal and interest, you can go to the district/county real estate trading center where the property is located to cancel the mortgage with the bank's loan settlement certificate and other real estate rights certificates of the collateral.
Don't repay the loan in advance in the first year. According to the relevant provisions of the provident fund loan, part of the prepayment should be made one year after the repayment, and the amount you return should exceed the repayment amount of six months.
Don't forget to apply for an extension if you have difficulty in repaying the loan. Don't insist on it yourself when your solvency drops during the loan period and it is difficult to repay. ICBC customers can apply to ICBC for extending the loan term. If it is verified by the bank that you have not defaulted on the loan principal and interest, ICBC will accept your application for extension.
5. Don't lose the loan contract and IOUs. To apply for a mortgage loan, the loan contract signed between the bank and you and the iou are all important legal documents. As the loan term can be as long as 30 years, as a borrower, you should take good care of your contracts and IOUs.