The mortgage can be repaid several years in advance.
If the repayment method chosen is average capital, and the repayment period of the mortgage we handle is 30 years, then the best time for early repayment should be between 10 and 20 years after we repay the loan, because if you choose this time period for early repayment, your principal and principal and interest have been repaid a lot, and the amount of outstanding loans is not much, and whether the currency depreciates will not have much impact on this part of funds, so repayment at this time is more cost-effective.
If the repayment method you choose is equal principal and interest, the sooner you choose to repay in advance, the more you can save a lot of money. However, if you have paid the mortgage for ten years, and you have basically paid off the mortgage interest at this time, even if you choose to repay in advance, it will not save money. Of course, if you have more money, you can pay it off in advance.
Precautions for prepayment
1, prepayment time
Different banks will have different repayment time in advance. Most banks will require borrowers to apply for early repayment at least one year after repayment, but some banks say they can apply for early repayment at any time. In state-owned banks, if the lending banks are China Bank and China Construction Bank, it usually takes one year to apply for prepayment, while it takes half a year for ICBC to prepay.
2. Interest adjustment cycle
The interest rate adjustment cycle of banks is different. If the mortgage term exceeds 10 years, it is inevitable that the central bank will adjust interest during this period. Large banks such as ICBC, Agricultural Bank of China and China Construction Bank generally start to adjust to the new repayment interest according to the latest central bank benchmark interest rate at 438+0 on June 65 every year.
3. Cancel mortgage registration
Remember to cancel the mortgage registration after all the mortgages are paid off. Whether you pay off the mortgage within the time limit stipulated in the contract or repay it in advance, don't forget to cancel the mortgage registration after paying off the loan.