It is most cost-effective to repay the mortgage in one lump sum within the third to fifth years. At this point in time, no matter the average capital or the equal principal and interest, the interest repaid is not much. If you repay in advance, you can save more interest and get the best deal. In addition, under normal circumstances, banks will accept early repayment after 3-5 years, and most banks will not charge any liquidated damages, but the specific liquidated damages for early repayment shall be subject to the loan contract.

Matters needing attention in paying off mortgage in one lump sum

1. Pay attention to the time requirement for prepayment. Generally speaking, many banks have time requirements for buyers to repay loans in advance. Some banks stipulate that they can apply for early repayment at least one year after repayment, but some banks say they can apply for early repayment at any time. Among the state-owned banks, China Bank and China Construction Bank need to repay the loan one year in advance to apply for prepayment, while ICBC needs to repay the loan six months 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 loan documents should be ready. For the lender who is ready to repay the loan in advance, he needs to call or submit a written application before repaying the loan in advance, and then bring his ID card and loan contract to the bank for approval. If it is a borrower who has settled all the balance, after the bank calculates the remaining loan amount, it is convenient for the borrower to save enough money to repay the loan in advance.

Don't forget to surrender. Not only do buyers pay off all loans in advance, but they also need to surrender to insurance companies and other departments. I would like to remind the buyers who are ready to repay the loan in advance that the original individual housing loan contract of Jiabao will be terminated in advance after all the loans are repaid in advance. According to relevant regulations, the lender can bring the original insurance policy and the proof of paying off the loan in advance, and return the premium paid in advance to the insurance company on a monthly basis. The insurance premium refunded by paying off the loan in advance is the present value of the insurance premium paid at the time of early return minus the present value of the insurance premium occupied before early return.

Don't forget to cancel the mortgage registration after paying off the mortgage. Property buyers need to go to the local real estate registration center for mortgage registration when handling bank mortgage loans. Therefore, after paying off the mortgage, buyers should pay attention to canceling the mortgage registration immediately after paying off the loan, whether during the contract period or in advance.