Mortgage repayment in advance, the bank does not clearly stipulate the amount of repayment, individuals can pay off their debts in one lump sum in advance, or they can repay in part in advance. Therefore, for the repayment amount, the bank depends on the repayment time. Generally speaking, for the prepayment of mortgage, if the mortgage loan is not settled for one year, a certain penalty will be charged, and if you apply for prepayment one year later, you don't have to pay the penalty. There are also banks that have certain requirements for repayment. For example, Bank of Communications, which repays in advance, requires the repayment amount to be at least 6 times of the monthly repayment amount. Whether it is cost-effective to repay the mortgage in advance needs to be comprehensively judged from the aspects of repayment amount, repayment period and repayment method, and cannot be generalized.

1, prepay in full. Buyers pay off all the remaining loans in one lump sum, but the interest paid is not refundable and the remaining interest can be exempted.

2. Some loans are repaid in advance, and the monthly repayment amount of the remaining loans remains unchanged. Shortening the repayment period can save more interest.

3. Partial prepayment, the monthly repayment amount of the remaining loan is reduced, and the repayment period remains unchanged. This way can reduce the monthly payment burden, but there is no second repayment method to save money.

4. Partial prepayment will reduce the monthly repayment amount of the remaining loans, shorten the repayment period and save more interest.

5. The total principal of the remaining loans remains unchanged, but the repayment period is shortened. This way will increase the monthly payment burden, but it can reduce some interest, but compared with other repayment methods, it is slightly uneconomical.

Extended data

The following three situations are not suitable for prepayment.

1, when signing the loan contract, enjoy the interest rate discount of 30% to 8.5%. As we have enjoyed a lower discount rate, we are now in the channel of interest rate reduction. If the central bank doesn't cut interest rates during the year, even if the latest interest rate is implemented at 65438+ 10/in June next year, the interest rate will only be lower than that in the previous period.

2. Buyers whose repayment period of equal principal has passed 1/3. Since the average capital divides the total loan amount by half of the cost, the repayment interest is calculated according to the remaining principal. In other words, the later this repayment method is, the less the remaining principal will be, so the less interest will be generated. In this case, when the repayment period exceeds 1/3, the borrower has already paid nearly half of the interest, and the later repayment is mostly the principal, and the interest level has little effect on the repayment amount.

3. Buyers who have reached the medium-term repayment of principal and interest. Matching principal and interest repayment adds up the total principal and interest of mortgage loans and distributes them equally every month. The monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled monthly. In other words, the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. By the middle of repayment, most of the interest has been paid off, so it is of little significance to repay the loan in advance.