Precautions for repaying part of the mortgage in advance When repaying in advance, customers should pay attention to the following matters:
1. You can look at the liquidated damages in the loan contract, because many banks will ask you to pay off the loan within a certain period of time, otherwise you will owe you a sum of money.
For example, some banks stipulate that if it is paid off within three years, no penalty will be charged. If it is repaid in advance within three years, it shall pay a certain amount of liquidated damages, such as 3% of the prepayment amount within 1 year, 2% within two years and 1% within three years (see the contract signed by the handling bank for details).
2. Repay in advance at the best time according to your repayment method (matching principal and interest or average capital): Take the mortgage loan with matching principal and interest repayment method as an example. Because the monthly repayment amount remains unchanged, the ratio of interest to principal will change constantly, but in the early repayment period, interest accounts for a large proportion, and in the later repayment period, the principal is mainly repaid. So for customers, prepayment is the best choice, for example, in the fifth or sixth year of repayment.
Otherwise, the interest will be recovered later, and even if the money is repaid in advance, there will be no big discount.
The above is the answer to whether the 30-year mortgage can be repaid in advance and the precautions for repaying part of the mortgage in advance. I hope my answer will satisfy you and provide some ideas for your question.