The prepayment of mortgage is only part of the principal and interest of the bank. If the principal and interest of the bank loan have not been settled, the interest will still be implemented according to the loan interest rate agreed in the original loan contract (with discounts). If the loan balance is not settled, you can choose the following repayment plan: A. The repayment period is shortened and the monthly payment amount is inconvenient. B the repayment period of the loan remains unchanged, and the monthly payment is reduced. Repaying the bank loan in advance is a breach of contract, which will cause certain losses to the bank, so the bank will charge a certain handling fee (liquidated damages), which is about one month's monthly payment.
First, there is no need to pay the interest after settlement; In case of partial prepayment, the interest on the remaining loan will be recalculated, but the prepayment needs to pay about 1% prepayment penalty or handling fee. Second, do you need to pay a handling fee for prepayment? State-owned banks, such as ICBC, ICBC, China Construction and Li Jiao, charge no handling fee for prepayment, while ICBC charges 2-3 months' interest as handling fee, while other banks charge 1 month's interest. Among them, the Agricultural Bank of China charges one month's interest for the early repayment of loans within three years, and no fees will be charged after three years.
Second, most joint-stock banks have indicated that they do not charge fees. However, Shanghai Pudong Development Bank said that if repayment is made two years in advance, a handling fee of 3% of the repayment amount will be charged, and no handling fee will be charged after two years. Foreign banks generally charge differential fees according to the repayment period. For example, Citibank charges 2% of the repayment amount in advance after one year, and the fee is reduced to 1% after two years, and no handling fee is charged after three years; There is no handling fee for prepayment by HSBC after three years, at least 20,000 yuan after two years and at least 30,000 yuan after one year. Time for prepayment: Most banks require at least one year before they can apply for prepayment, but some banks have indicated that they can apply for prepayment at any time. Among the state-owned banks, BOC and CCB need to repay for one year before they can apply for early repayment, while ICBC needs to repay half a year in advance. In addition, it takes one year for China Merchants Bank, Bank of Communications, East Asia and other banks to apply for early repayment, while Huaxia Bank said that it can apply for repayment at any time.