There are two main types of prepayment of bank mortgage in China: one is full prepayment and the other is partial prepayment. If the loan from the Bank of China is repaid in advance for less than one year, a penalty interest of no more than six months will be charged (calculated according to the loan interest rate on the prepayment date). If the loan is repaid in advance after one year, no penalty will be charged.

Early repayment means that the borrower applies to the bank to repay part of his loan in advance, and guarantees that the loan will be repaid in the current month without being overdue last month; Pay off all or part of the loan in one lump sum according to the date stipulated by the bank.

Prepayment is generally divided into two ways: partial prepayment and full prepayment.

According to the different repayment methods, the borrower can choose to reduce the term or amount. It is understood that at present, most banks can provide five ways to repay loans in advance for customers to choose from.

First, all loans are repaid in advance, that is, customers pay off all remaining loans at one time. (There is no need to repay the interest, but it will not be refunded if it is paid)

Second, a part of the loan will be repaid in advance, and the monthly repayment amount of the remaining loan will remain unchanged, thus shortening the repayment cycle. (save more interest)

Third, repay some loans in advance, reduce the monthly repayment amount of the remaining loans, and keep the repayment period unchanged. (Reduce the monthly payment burden, but less than the second type)

Fourth, repay some loans in advance, reduce the monthly repayment amount of the remaining loans and shorten the repayment cycle. (save more interest)

Fifth, the remaining loans keep the total principal unchanged and only shorten the repayment period. (The monthly payment will increase and the interest will decrease, but it is relatively uneconomical.)

Financial experts suggest that when repaying in advance, the principal should be reduced as much as possible, the loan term should be shortened and the interest should be paid less.

How to handle prepayment, prepayment has the following requirements.

First, the borrower can only propose to repay part or all of the loan in advance for the first time after six months of normal repayment of the principal and interest of the loan;

Second, for serious loan management, lending institutions have set a minimum amount for early repayment of some loans, which generally needs more than 6,543,800 yuan;

Third, the borrower generally needs to notify the lending institution 18 days or 15 days in advance to repay the loan in advance, and must submit a written application to the lending institution with the original loan contract, bank repayment savings card, monthly statement of fund repayment, my ID card and other materials, which must be reviewed and approved by the lender;

Fourth, the borrower still needs to repay the original monthly loan principal and interest repayment amount in the current month, and at the same time deposit the loan amount to be repaid in advance into the bank savings card.

How to repay the bank loan in advance?

The general process of China Bank's prepayment is as follows:

The first step is to make an appointment in advance. If the borrower needs to repay the loan in advance, he/she needs to make an appointment with China Bank by telephone 15 working days in advance, and provide the name, ID card and specific repayment date to the staff at the time of appointment. The main purpose of this is to make banks prepare in advance, thus shortening the processing time of users.

The second step is to repay the loan. After the user makes an appointment, by the repayment date. You can bring your own relevant information and go to the bank to handle the loan repayment procedures in advance. Users need to pay attention to the fact that early repayment of loans requires the bank to handle it.

The third step, when we complete the loan repayment procedures in advance according to the instructions of the bank and settle the relevant loans. It is very convenient to go to the Housing Authority to change rooms with the certificate of settlement and other warrants.

Precautions for advance payment:

1. Ask the bank if there is any penalty or interest. The user's prepayment violated the loan contract signed with the bank at that time. Therefore, it may be necessary to pay related liquidated damages or interest. In this regard, borrowers need to ask clearly.

2. Choose the appropriate repayment method. There are three main situations of prepayment. First, the monthly repayment amount of the remaining loans remains unchanged and the repayment period is shortened; Second, the remaining loans reduce the monthly repayment amount and keep the repayment period unchanged; Third, the remaining loans will reduce the monthly repayment amount and shorten the repayment cycle. Borrowers can choose the appropriate way according to their actual situation.

Extended data:

Under the following circumstances, prepayment is not recommended:

1. Enjoy the interest rate discount of 30% to 8.5% 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;

2. For the buyers whose repayment period of equal principal has exceeded 1/3, 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;

3. For buyers who repay the principal and interest in the medium term, 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.

How to repay the bank loan in advance? A few tricks to teach you how to do this.

Buying a house by loan is the most suitable way for ordinary people to buy a house. As long as they repay the loan in time every month, they can live in peace of mind. However, the repayment period is generally longer. If we have enough funds in hand, can we repay the loan in advance? What should I pay attention to? Let's explain the related matters in detail below.

Is there any requirement for repayment time and amount in advance?

Early repayment does not mean that you can apply if you want. Some banks require repayment for one year before they can apply for early repayment, while others require half a year. Some also stipulate the repayment amount, such as 1 1,000 yuan, and some even require repayment times, which can only be paid once a year. Even provident fund loans with relatively simple repayment operations have similar provisions. Some people who need to repay the loan in one year can apply for early repayment, requiring the repayment amount to be not less than 6 months of housing provident fund loan principal and interest. Some even require loan principal and interest 1 year and annual repayment 1 time. In short, the bank may have requirements on the repayment time, repayment amount and repayment times of prepayment, so it is best to know clearly before buying a house.

Prepayment process:

Step 1: First, check the requirements of prepayment in the loan contract, and pay attention to whether it is necessary to pay a certain penalty for prepayment.

Step 2: Call the loan bank in advance to inquire about the application time and minimum repayment amount of the loan and other materials that need to be prepared.

Step 3: Submit the repayment application to the relevant departments in person according to the requirements of the bank.

Step 4: The borrower takes the relevant documents to the borrowing bank and goes through the relevant formalities of prepayment.

Step 5: Submit the prepayment application form and deposit the prepayment in the counter.

Prepayment:

So what kinds of prepayment methods do banks generally offer now? They can be roughly divided into the following four types:

First, please repay all the loans in advance, which is undoubtedly the best, so you can pay a lot less interest, but the interest paid is non-refundable.

Second, partial prepayment, the remaining monthly repayment amount remains unchanged, and the repayment period is shortened, which can reduce a lot of interest.

Third, part of the early repayment, the monthly remaining repayment amount is reduced, but the repayment period remains unchanged, which can reduce the monthly payment and relieve the pressure.

Fourth, partial prepayment, the remaining loan not only reduces the monthly repayment amount, but also shortens the repayment period and saves a lot of interest. Here is a reminder, as long as you think you can repay in advance within five years, it is best to use the average capital method, because the interest paid by the previous matching principal and interest method is too large and relatively uneconomical.

Precautions for prepayment of mortgage?

1. Allow banks to repay loans in advance at different times. Most banks require at least one year before they can apply for prepayment, but some banks say they can apply for prepayment at any time. Among the state-owned banks, BOC and CCB need to repay for one year before they can apply for early repayment, while ICBC needs to repay half a year in advance. In addition, it takes one year for banks such as China Merchants Bank and Bank of Communications to apply for prepayment, while Huaxia Bank said it can apply for repayment at any time.

2. The interest rate adjustment cycle of banks is different. The general mortgage term is over 65,438+00 years. In this cycle, it is inevitable for the central bank to adjust interest rates, and the time for banks to adjust interest rates is different. Banks in China, such as China Industrial and Commercial Bank, China Agricultural Bank and China Construction Bank, etc. Generally, from June 65438+1 October1every year, the new repayment interest will be adjusted according to the latest central bank benchmark interest rate. Foreign banks generally choose to adjust in the current month or quarter. Citibank will implement the new interest rate at the beginning of the next quarter and HSBC will implement the new interest rate on the same day. For mortgage owners, it is obviously more cost-effective to adjust as soon as possible if they are in the channel of interest rate reduction; If it is in the interest rate hike cycle, the later the adjustment, the more cost-effective.

Don't forget to cancel the mortgage registration after "repaying the mortgage". Regardless of whether the loan is repaid during the contract period or in advance, the public should not forget to cancel the mortgage registration after the loan repayment is completed.