1. Repay part in advance, and keep the monthly repayment amount of the remaining loans unchanged, thus shortening the repayment period.
2. For partial prepayment, the monthly repayment amount of the remaining loans will be reduced and the repayment period will remain unchanged.
3. If part of the loan is repaid in advance, the monthly repayment amount of the remaining loan will be reduced and the repayment period will be shortened. If your prepayment shortens the loan life, you have to re-sign the loan contract with the bank, and the interest rate has to be recalculated according to the current mortgage interest rate. If there are many discounts on the mortgage interest rate obtained by the early loan, it is not worthwhile to change the loan cycle.
Precautions for prepayment of mortgage:
1. Know your current repayment situation: You don't have to repay in advance if you have money. If you want to repay in advance, you need to know whether you meet the requirements for prepayment, especially for friends who enjoy interest rate discount and provident fund purchase policy concessions, prepayment is not cost-effective.
2. Find out whether the bank has provisions on default penalty for prepayment: If the buyers want to prepay, they need to know the requirements of clearing the bank for prepayment, because some small and medium-sized joint-stock banks now have penalty requirements for prepayment. However, if it is a large state-owned bank, there may be no penalty interest, but there are also different degrees of liquidated damages. Whether it is penalty interest or liquidated damages, it will be stated in the loan contract.
3. Is there a better financial channel? If the borrower has its own financial channel, it should be noted that the mortgage interest rate is the lowest in today's bank loans, so the borrower should calculate whether it is cost-effective to repay in advance. For families with financial channels, they can make profits with idle funds, which may be greater than the interest saved by repaying loans in advance, but it should be noted that financial management is also risky.
4. There is no need to repay the provident fund first: for the borrower who buys a house with a portfolio loan, it is not necessary to repay the provident fund first, that is to say, only the money in the provident fund account must be used to pay off the provident fund loan first. If the borrower has other funds, he can decide whether to repay the commercial loan or offset the provident fund loan first according to his personal preferences and needs.
5. Don't forget to cancel the mortgage registration after repaying the loan: after paying off the loan in advance, the borrower still needs to cancel the mortgage registration, which is very important for the buyers, because the real estate license is mortgaged to the bank when buying a house with a loan, and you must remember to get back your real estate license and cancel the mortgage registration on time when paying off the loan.