If you want to repay the mortgage for 3 years in advance, the more suitable repayment date is within 4-5 years after the loan. When buying a house with a mortgage, many buyers choose the equal principal and interest by default. This loan method has a higher interest rate in previous years, and then it decreases year by year. When the lender wants to repay in advance, the loan interest has actually been repaid by more than half, so it is not very worthwhile to repay in advance. In addition, major banks will charge a certain default fee for prepayment.
Precautions for prepayment of mortgage
1. If the bank agrees to make an appointment, it can be paid in advance within one year. Usually, it takes 2 to 7 working days for the bank; Different banks have different rules on prepayment. Before deciding to prepay, you must understand the bank's operating procedures.
2. Prepare loan documents. If you want to pay back the money in advance, you usually make a phone call first, then write a written application, and then go to the bank to apply for a loan. If you have paid off all the loans, you can repay the loan in advance after the bank calculates the balance. If the customer and the homeowner refinance the mortgage, the better choice is to find a professional guarantee company to entrust notarization.
3. Calculation method of interest rate after interest rate reduction. As we all know, the new interest rate standard is generally calculated from New Year's Day. Therefore, if you want to repay in advance, you must grasp the time and try to pay all the money back before the end of the year before the new interest rate takes effect, and then go to insurance companies and other institutions to go through the formalities of surrender.
requirements for early repayment
1. The borrower can only apply for early repayment or full repayment after six months of monthly repayment.
2. Lending institutions have strict loan management, and there are certain restrictions on loans for early repayment, which usually require more than 1, yuan.
3. The borrower shall notify the bank in advance before repayment, and submit the loan contract, bank repayment savings card, monthly capital interest statement, my ID card and other materials to the bank for loan, which will be confirmed after approval by the bank.
4. The borrower must repay the loan every month and deposit the money owed in the bank account.