If you can't change the repayment method, you can apply for prepayment. There are two ways to repay the loan in advance: shortening the loan term, keeping the monthly repayment amount unchanged, reducing the monthly payment and keeping the loan term unchanged. If you apply for early repayment, you need to re-sign a loan contract, and then you can change the repayment method.
What should I pay attention to when repaying my mortgage in advance?
1. Is there a handling fee for prepayment? When a lender applies for a loan, it will generally sign a loan contract with a bank, and there will be some relevant provisions of "charging fees for early repayment", so there is a legal basis for banks to charge fees for early repayment. The bank may charge a certain fee. Therefore, when you want to repay the loan in advance, you must ask in advance whether the bank has any charges and other issues.
2. Whether to pay liquidated damages for prepayment. For the case that the loan contract takes effect less than one year and the lender requires early repayment, the bank may charge one month's interest according to the amount of early repayment and the loan interest rate on the date of early repayment as a penalty, so choosing the right time to repay in advance can save a lot of money.
3. Go through the formalities of repaying the loan in advance. Lenders who are prepared to repay the loan in advance also need to go through certain legal procedures and must submit a written application one week to one month in advance; And you need to agree on a specific repayment time. During this period, the lender will also bring some necessary documents, such as ID cards and loan contracts, and go to the bank to fill out the repayment application form and repayment agreement in advance.
It should be noted that all the repayment money should be deposited in the designated passbook or bank card. Don't make a mistake, otherwise the bank will not automatically deduct the money, so it can't be considered as early repayment.
4. Is there a limit on the number of times to repay the loan in advance? Another problem that lenders need to pay attention to is that when applying for prepayment, they must ask the relevant banks in advance whether there is a limit on the number of prepayments. According to this specific situation, we will determine whether it is necessary to repay the loan in advance, take a long-term view and consider the future repayment problem.
Don't forget to cancel the mortgage registration after paying off the mortgage. Whether the loan has been paid off or repaid in advance within the contract period, the lender should remember to cancel the mortgage registration and get back his real estate license. However, the operating regulations of each bank are different, so it is necessary to consult clearly in advance.
6. Remember to surrender after paying off the loan. After the property buyers pay off all the loans in advance, there is another point that needs attention, that is, they need to go to insurance companies and other relevant departments to surrender. The lender also needs to bring the original insurance policy and the proof of paying off the loan and other related documents.