2. Some banks have many requirements for early repayment, such as the number of years and the amount, otherwise they will charge a certain penalty. If you choose to prepay, you need to consult the bank in advance.
3. You can only apply for early repayment after the loan is issued for one year, and you can only repay in part or in whole after submitting a written application.
What are the precautions for repaying the mortgage in advance?
1. Pay attention to the application time.
Although banks allow borrowers to repay their mortgages in advance, they can't pay them back if they want. Generally, borrowers need to apply in advance and go through repayment procedures after approval. Banks have regulations on the time of applying in advance, and borrowers should know clearly before repayment.
2. Liquidated damages for repaying the loan in advance
I applied for a mortgage in the bank. Although banks generously allow applicants to repay their mortgages in advance, most banks will charge a certain fine if an individual's mortgage application period is short and has not exceeded one year.
3. The documents need to be ready.
If the borrower wants to repay the loan in advance, he should generally go to the bank for examination and approval with his ID card and loan contract after applying by phone or in writing. If the borrower has settled all the balance, it is convenient for the borrower to deposit enough funds to repay the loan in advance after the bank calculates the remaining loan amount.
If it is a customer or owner of the sub-mortgage business, it is best to find a professional guarantee institution to do entrusted notarization to avoid the risk that the owner will increase the price after the owner repays in advance, and the customer will not buy it or help the owner pay off the final payment with the down payment.
4. Repayment period
Although repaying the mortgage in advance can get rid of the pressure of mortgage earlier, it is not cost-effective if individuals blindly repay the mortgage in advance. For example, an individual's mortgage has been repaid in half. In this case, it is not suitable to repay the mortgage in advance.
5. Don't forget to surrender and mortgage.
After the lender settles all the final payment in advance, the bank will issue a settlement certificate. The borrower can call the relevant insurance company with the original loan settlement certificate, the original policy and the original invoice issued by the bank to make an appointment to surrender.
When the borrower applies for a loan, the bank will register the mortgage. Don't forget to release the mortgage after the loan is settled. The borrower should bring the property right certificate, settlement certificate and other rights certificates mortgaged in the bank to the office of the District Construction Committee to understand the mortgage situation. In this way, your own property is completely your own property.