Theoretically speaking, it is cost-effective to repay the mortgage in advance from the bank loan, but in actual repayment, it depends on whether there is an agreement on prepayment in the loan contract, and whether there is a penalty for prepayment if there is a breach clause. If the penalty is too heavy, it is necessary to weigh whether to repay the loan in advance.

Pay attention to the following points before preparing for prepayment.

1. If the income is higher than the loan interest, the prepayment is not required.

If the lender can make the income higher than the loan interest expense through wealth management or other investments, it is not necessary to repay the mortgage in advance. If there is no good income in the next year or years, he can consider repaying the mortgage in advance.

2. There is little interest in the middle and late period of repayment, so there is no need to repay in advance.

For citizens who choose to repay the same principal, if the repayment period has passed 1/3 or the buyers who have repaid to the middle period, the repayment interest will be calculated according to the remaining principal because the average capital will evenly spread the total loan amount to the cost. 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, it is of little significance to repay the loan in advance.

3. Real estate mortgage loans obtained from banks should be repaid in advance.

For some consumers who do not have a strong sense of financial management and cannot effectively restrain their impulses; People who don't want to have debt pressure and bear too much loan pressure; People who want to pay off the late mortgage in one lump sum and then get more loans from the bank with real estate mortgage; Residents with unstable income can choose to repay their mortgage in advance.

4. Repay the commercial loan first and then the provident fund loan.

Paying off the mortgage in advance may not be paid off in full. You can repay part of the mortgage in advance according to the regulations of the bank and your family's economic situation. For those who use provident fund loans to buy a house, they can also consider repaying the loan in advance. Generally speaking, the provident fund cannot be withdrawn. If you don't repay the loan in advance, you can't take it out of your account. It is better to withdraw the loan first, which can also improve the efficiency of the use of funds. If you choose a combination of commercial loans and provident fund loans, you can repay the commercial loans first if you repay the mortgage in advance.

Mortgage prepayment procedure

1. Call the hotline of the handling bank, contact the customer service staff of the bank through the manual service channel, and apply for early repayment from the other party (before that, you can check the repayment terms in the mortgage contract, and consult the bank about the application time, minimum repayment amount, materials to be prepared, etc. ).

2. After the appointment is successful, bring personal ID card, repayment bank card, mortgage contract and other materials to the bank's business outlets for prepayment procedures, and deposit the money that needs to be repaid in advance into the repayment bank card.

3. The banking system will automatically initiate the deduction for the customer and deduct the corresponding amount from the repayment bank card to complete the prepayment operation.