2. One-time repayment method: withdraw the balance of the housing provident fund account and make one-time repayment. Many people repay their loans in this way after retirement. After repayment, if there are still outstanding loans, the remaining loan principal and repayment period will be recalculated to determine the future monthly repayment amount.
I. Matters needing attention in repaying mortgage with provident fund
1. The management center will adopt the reimbursement system after the Agreement on Monthly Withdrawal of Provident Fund for Repayment comes into effect. According to the borrower's repayment amount in the entrusting bank last month, if the deposit amount last month is less than the loan principal and interest due last month, the difference will be made up by the borrower on the original repayment withholding card; If the deposit amount last month is greater than the loan principal and interest payable last month, the same amount of loan principal and interest payable last month will be directly transferred from the borrower's housing provident fund account to its repayment withholding card.
2. Monthly repayment of provident fund and loan year are both convenient service measures implemented by provident fund management center, both of which have their own advantages and disadvantages. The staff of the Provident Fund Center pointed out that you can use the provident fund paid every month for monthly repayment, but during the whole repayment period, the repayment plan remains unchanged and the interest to be repaid has not decreased, which is more suitable for employees who want to reduce the pressure of monthly repayment.
3. Repaying the loan year by year is the principal of the loan, which can reduce the interest expense of the future loan and speed up the repayment of the loan, so it is more suitable for buyers who want to reduce the interest expense of the loan. When citizens choose to offset by year or month, they must carefully consider the actual situation of their families and do not blindly go to outlets to apply for monthly repayment. "Once the contract is signed, it will not be changed for a short time."
Second, the use of provident fund matters needing attention
1. The withdrawal amount of provident fund cannot exceed the house payment.
Some people pay a large amount of housing provident fund, and there may be 600 thousand in their accounts, but the total amount of his house purchase is 300 thousand. He thought that he could take out all the balance of the provident fund and pay the house price and still have 300 thousand left, but this is not the case. The total withdrawal of housing provident fund cannot exceed the total purchase price. Even if you have 600 thousand in your provident fund account, as long as the amount of the house you buy is less than 600 thousand, you can't withdraw it in full.
2. First use the provident fund loan to settle the previous loan.
If you have applied for provident fund loans, there will be corresponding records in the core system of provident fund. As long as your loan is not paid off, you or your spouse can't apply for a provident fund loan again. However, if the previous loan has been settled, you can apply for a provident fund loan to buy a house again, which is not restricted by the second suite policy.
3. The provident fund cannot be used as the down payment for buying a house.
Many people think that provident fund can be used as a down payment for buying a house, but this is not the case. Generally speaking, the provident fund is used first and then withdrawn. In other words, if you want to buy a house with a provident fund loan, you must pay a down payment first, and then take your ID card, household registration book and other supporting materials to the local housing provident fund management core to withdraw the balance of the provident fund.