1, one-time prepayment

If the buyer chooses to prepay in one lump sum and pay off all the mortgage principal, it is recommended to apply for prepayment after 2 years of repayment. Because most banks have regulations, if buyers choose to repay in advance, if the repayment period is less than 2 years, they need to charge about 3% penalty or handling fee. If buyers choose to repay the loan in advance after two years, they can save a lot of formalities.

2. Repay part of the loan in advance

If buyers choose to repay part of the loan in advance, and the repayment method is equal principal and interest, it is recommended to find out how much mortgage principal they still lack. Because under the repayment method of equal principal and interest, the more unpaid principal of the buyers, the more interest. If the buyer still has more than half of the principal outstanding, it is more cost-effective to repay the loan in advance, because it can reduce a lot of interest. However, if the mortgage principal of the buyer has been repaid a lot, there is no need to choose to repay the loan in advance, because the basic repayment of the buyer behind is interest.

In addition, it is also necessary to remind buyers that when repaying loans in advance, it is best not to choose the method of "keeping the remaining loan principal unchanged and shortening the repayment period". This method will increase the buyer's monthly burden and increase the risk, which is not cost-effective compared with other methods.

It should be noted that mortgage repayment can choose average capital and equal principal and interest, and different repayment methods also have a certain impact on early repayment. Because sometimes it is cost-effective to repay the average capital within a certain period of time, but it may not be cost-effective if the repayment method is equal principal and interest. Therefore, users are advised to pay in advance after calculating whether it is cost-effective.