The loan has been repaid in advance, and the remaining money is the principal and interest. The money and interest are calculated according to the interest rate of the loan contract. After the change, the bank will re-formulate the repayment plan in order to repay in time.
After paying part of the money in advance, users can choose the payment method of reducing the payment month without changing the monthly repayment amount, or they can choose the payment method without changing the monthly repayment amount. Of these two methods, "unchanged every month, but paid off every month" is more economical and requires lower interest.
Generally speaking, if repayment is made in advance, the remaining principal will be reduced. The less principal, the lower interest, and the less money you have to pay back. If you have extra money and want to lower the interest rate, but you can't pay it all at once, you can consider repaying it in advance.
Conditions for repaying loans in advance
1. If the borrower wants to repay the loan in advance, it will take at least half a year, and even some banks will require more than one year. Generally, the bank will submit a written or telephone application to the bank within 15 working days, and the bank will review the loan application after receiving it, so it will usually be completed within more than one month. In addition, major banks have different requirements for loans. Some banks will increase the loan amount to 1 10,000 yuan, and some banks will charge a certain penalty.
2. If the borrower wants to repay the loan in advance, he usually needs to apply by phone or in writing, and bring his ID card and loan contract to the bank for approval. If the borrower has paid off all the loans, the bank can repay them in advance after calculating the balance. If it is the owner and customer of the mortgage loan, it is best to find a professional intermediary company for notarization, so as to avoid the risk of the owner after the owner pays back the money in advance or the customer helps the owner pay off the final payment with the down payment.
If you repay the loan, don't forget to cancel the mortgage. Borrowers need to bring real estate licenses, settlement vouchers and other bank rights certificates to the District Housing Construction Committee to understand the mortgage procedures. Only in this way can his house truly become his private property.