At present, the borrower can apply to the bank for early repayment after preparing the corresponding materials. After the bank has passed the examination and successfully repaid the loan, it can go through the formalities of arrears according to the following procedures:
1. Go to the loan bank to obtain the loan settlement certificate, obtain the certificate from the Housing Authority, affix the seal of the loan bank, and indicate that the loan has been paid off, and agree to cancel the mortgage;
2. The real estate owner shall go through the mortgage cancellation registration formalities with the real estate license, the original title certificate and the ID card, stamp the title certificate and indicate the cancellation date.
It should be noted that if the seizure is not resolved, despite the early repayment, the ownership of the house is still owned by the bank, so after the early repayment, the seizure procedures need to be handled in time.
First, should I pay liquidated damages for prepayment?
Many people don't understand why banks have to pay liquidated damages for early repayment, and banks will not lose money.
But this is not profitable. When you repay it in 30 years, the bank will earn a lot of interest.
But you paid it off 10 years in advance, and the bank lost so much interest, so it is natural to ask for compensation and collect some liquidated damages.
Therefore, prepayment is actually a breach of contract, which can generally be indicated in the contract.
However, some banks just want to make an appointment for early repayment and will not charge liquidated damages. Different banks are different.
2. What are the ways of prepayment?
There are two main types of early reimbursement: full early reimbursement and partial early reimbursement.
Pay off all in advance, only the principal, no interest.
If you return a part in advance, you can agree with the bank to return more, reduce the preferential amount for next month, and keep the repayment period unchanged.
Perhaps the discount for the current month remains unchanged and the reimbursement period is shortened. Or both at the same time, and so on.
If you want to save interest, you'd better pay it off in advance.
But as I said at the beginning, you think you saved interest by prepaying, but in fact you may be losing money. So ask yourself, when is the right time to pay in advance? Which one is not suitable? Choose the one that suits you best.
3. Are you suitable for prepayment?
Suitable for people who repay in advance
(1) is very sensitive to debt, and the thought of debt is very stressful.
If there is no suitable investment channel, the money earned by financial management is far less than the bank interest saved by repaying the loan in advance.
I want to invest my house as collateral. In this case, you can pay off the loan in advance, remove the mortgage of the house and make some mortgage investment in the house.
Advantages: saving loan interest and reducing monthly repayment pressure.
Disadvantages: Early repayment of working capital will lose some investment opportunities.