Average capital is selected for prepayment of mortgage loan. Banks have two repayment methods: equal principal and interest and average capital. Equal principal and interest is the sum of principal and interest paid every month. In the average capital, the principal paid every month is the same, but the interest gradually decreases every month. If you want to repay the mortgage in advance, it is recommended to choose the way of average capital. The pressure of early repayment is relatively high, which is suitable for people with higher income. In the repayment method of equal principal and interest, the repayment speed of principal is relatively slow, and it takes a relatively long time to occupy funds. The total interest of repayment is higher than the average capital repayment method of the same period.

First of all, you must ask the requirements for repaying the loan in advance.

If the borrower wants to repay the loan in advance, it must be repaid for more than half a year, or even individual banks require repayment for more than one year. Banks generally require borrowers to submit written or telephone applications 15 working days in advance. After receiving the borrower's application for early repayment, the bank needs to examine and approve it, so it usually takes about one month. In addition, banks have different requirements for early repayment of loans. For example, some banks stipulate that early repayment is an integer multiple of 65,438+0,000, and some banks need to charge a certain penalty.

Second, the documents for prepayment need to be prepared.

If the borrower wants to repay the loan in advance, he should generally go to the bank for examination and approval with his ID card and loan contract after applying by phone or in writing. If the borrower has settled all the balance, it is convenient for the borrower to deposit enough funds to repay the loan in advance after the bank calculates the remaining loan amount. If it is a customer or owner of the sub-mortgage business, it is best to find a professional guarantee institution to do entrusted notarization to avoid the risk that the owner will increase the price after the owner repays in advance, and the customer will not buy it or help the owner pay off the final payment with the down payment.

Third, don't forget to surrender and lift the mortgage when repaying the loan in advance.

After the lender settles all the final payment in advance, the bank will issue a settlement certificate. The borrower can call the relevant insurance company with the original loan settlement certificate, the original policy and the original invoice issued by the bank to make an appointment to surrender. When the borrower applies for a loan, the bank will register the mortgage. Don't forget to cancel the mortgage after the customer settles the loan. The borrower should bring the property right certificate, settlement certificate and other rights certificates mortgaged in the bank to the office of the District Construction Committee to understand the mortgage situation. In this way, your own property is completely your own property.

Fourth, not everyone is the most suitable to repay the loan in advance.

Compared with the current CPI, the 30% interest rate of the loan customers who have signed the contract can be said to be very low, and the capital utilization cost of these buyers is very low, so it is not recommended to repay the loan in advance.