What are the procedures for repaying the mortgage in advance?
1, make an appointment in advance. Usually, if the borrower wants to repay the loan in advance, he needs to make an appointment with the bank in advance. Specific appointment methods include telephone appointment and bank counter appointment. As for which method to adopt, the borrower can consult the loan bank in advance to understand the relevant situation of prepayment.
2. Submit the repayment application. When making an appointment, the borrower shall submit relevant repayment application according to the requirements of the bank, mainly including information such as prepayment amount and repayment method. After receiving the application, the bank will determine whether the borrower has the conditions for early repayment according to his situation.
3. Make repayment. After the bank agrees to the borrower's request for early repayment, the borrower can transfer the amount to be repaid to the account designated by the bank, and then the bank will withdraw the money and recalculate the interest. The whole repayment process will be over. Note: 1. When the borrower repays the loan in advance, he must consult the loan bank. Mainly ask about the way of prepayment, whether there is any liquidated damages, minimum repayment amount and other information, so that you can know fairly well.
2. If the user partially repays the loan, the relevant interest and loan term should be readjusted. At this point, users can choose to keep the loan term unchanged and reduce the monthly repayment amount. You can also choose to keep the repayment amount unchanged and shorten the loan time. Which method to choose varies from person to person.
How to calculate the liquidated damages for early mortgage repayment?
All banks support early repayment of mortgage loans, but the calculation method of liquidated damages is different. The following is the calculation method of liquidated damages for prepayment of all banks:
1. Industrial and Commercial Bank of China: If the prepayment of the mortgage is less than one year, a penalty of 5% of the prepayment amount will be charged; Will not be fined for one year.
2. China Merchants Bank: If the mortgage is repaid in advance for less than one year, the interest of at least three months will be charged as liquidated damages; Charge at least one month's repayment interest in a year as liquidated damages.
3. Agricultural Bank: If the mortgage is repaid in advance for less than one year, a penalty will be charged at the principal × monthly interest rate; Will not be fined for one year.
4. Bank of China: If the mortgage is repaid less than one year in advance, and the maximum interest does not exceed six months, it will be liquidated damages; Will not be fined for one year.
5. China Construction Bank: If the prepayment of the mortgage is less than one year, a penalty of 3% of the prepayment amount will be charged; If prepayment is made after one to two years, 2% of prepayment amount will be charged as penalty; If repayment is made in advance after two to three years, a fee of 1% will be charged.