Interest needs to be paid for the prepayment of the house purchase loan. If the mortgage is repaid in full in advance, then the interest will not be repaid in the future, only until the borrower pays off the loan. For example, the borrower's mortgage term is 30 years, and he chooses to repay it in full in advance in the fifth year, so the interest for the next 25 years will not be repaid. However, if you choose to prepay in part, the future interest will still be calculated according to the loan interest rate agreed in the original loan contract, that is, if you prepay in part, the future interest will still be paid.

What are the requirements for repaying loans in advance?

1. Make an appointment with the loan bank in advance. The time to repay the loan in advance does not depend on your mood, and the bank needs to approve it first. You can repay the loan in advance only if the bank approves it. Therefore, when you plan to repay the loan in advance, you'd better make an appointment with the loan bank one week in advance.

2. Repay the loan fee first. For repaying the loan in advance, the bank will charge a certain fee, and the most common one is liquidated damages. Different banks have different standards for collecting liquidated damages, so it is best for buyers to consult the loan bank first.

3. There is a limit on prepayment. For partial repayment in advance, it is not as much as the buyers want to pay back, but there are restrictions. Generally speaking, the minimum repayment amount is 6,543,800 yuan. Secondly, the repayment amount must be an integer multiple of 6,543,800 yuan.

4. It is required to repay the loan in advance. Most banks have requirements on the time to repay loans in advance. For example, they can only apply for early repayment after one year of repayment. Therefore, if the repayment time does not meet the requirements, you cannot apply for early repayment.

5. There are many requirements for prepayment of portfolio loans. Many homebuyers have adopted a combination of loans to buy a house. They wanted to repay the commercial loan before repaying the loan in advance, but they were rejected. The reason is that when the portfolio loan is repaid in advance, not only one of them can be repaid, but a certain proportion must be maintained.

How to calculate the interest on prepayment?

1. Full prepayment means one-time settlement of mortgage principal and interest. After all prepayment, the interest shall be calculated from the date when the principal and interest of the bank are paid off, and shall be calculated at that time when it is paid off.

2. Partial prepayment means that only a part of the loan principal and interest is repaid, and the remaining principal and interest are not settled. The remaining loan interest is still subject to the loan interest rate agreed in the original loan contract.

3. There are two ways to repay part of the loan balance in advance. One is to shorten the repayment period, and the monthly payment amount is inconvenient; Second, the repayment period remains unchanged, reducing the monthly payment. In contrast, the first one can save more interest.

Some banks will charge a certain fee for prepayment. ICBC needs to charge 2-3 months' interest as handling fee, while ABC, BOC and BOCOM charge one month's interest. Among them, the Agricultural Bank of China will charge one month's interest for prepayment within three years, and will not charge it after three years. Shanghai Pudong Development Bank said that if repayment is made two years in advance, a handling fee of 3% of the repayment amount will be charged, and no handling fee will be charged after two years.