Yes, but whether the bank is allowed to change the repayment method depends on the lender's economic situation and the specific contract signed with the bank.
For some low-income property buyers, the best state is to use the repayment method of equal principal and interest first, and then change it to the repayment method of average principal after a period of time. In this way, the average capital can not only spend the initial high repayment, but also save some interest.
The difficulty of changing the repayment method depends on the borrower's situation. The simplest procedure is that the borrower changes in the same bank, as long as he applies to the bank and signs an agreement notarized by a lawyer.
If the borrower needs to apply for inter-bank mortgage transfer, he must first apply to the bank that originally applied for the loan, sign the certificate of "agreeing to repay in advance" after obtaining the consent of the other party, print the previous repayment record, and then go to the housing developer to make a copy of the sales contract.
After all this is done, you must prepare the down payment invoice for buying a house and all the supporting documents needed for the first mortgage, such as ID card, household registration book and income certificate, before you can apply to the bank (the second bank) that is going to refinance the mortgage.
In addition, inter-bank refinancing needs guarantee. If the borrower has not applied for the house title certificate when handling the inter-bank mortgage transfer, the second bank will negotiate with the developer, and the developer will issue a letter of guarantee if the developer agrees and the second bank thinks that the developer's qualification is no problem.
If the house title certificate has been completed when the inter-bank mortgage is transferred, then it is necessary to find another guarantor. There are generally three options, the most convenient is that the borrower's unit provides guarantee; Secondly, the borrower's relatives and friends guarantee, but this requires the guarantor's high credit. Take Minsheng Bank as an example, they require that the guarantor's deposit in Minsheng Bank should not be less than the borrower's loan amount.
The last one is guaranteed by a professional guarantee institution, and the bank can do it, but the guarantee institution has to charge a certain guarantee fee.
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The advantage of average capital's repayment method is that the overall interest expense is low, and the monthly repayment amount will be reduced in the following period. The disadvantage is that the burden of early repayment is heavy, especially when repaying for the first time. Equal principal repayment is suitable for people with higher income, such as executives, gold collars and returnees.
The main point of the equal principal and interest repayment method is that the proportion of principal in the monthly repayment amount increases month by month and the proportion of interest decreases month by month. Repay the mortgage by matching the principal and interest, and the borrower's monthly payment will remain unchanged. Due to the same amount of money each month, it is convenient for borrowers to arrange income and expenditure, but their overall interest expenses are more. This method is applicable to employees of state enterprises and institutions with stable working income.
Two types of people are more suitable for prepayment. First, the borrower in the early stage of repayment, because the interest expenditure is usually concentrated in the early stage of repayment, the borrower can save interest by repaying the loan in advance at this time. Second, when the borrower can pay the remaining balance of the mortgage, but can't meet other capital needs, it is more cost-effective to choose early repayment.