After large repayment in advance, the monthly payment and interest will not necessarily decrease, depending on the specific situation, but whether the monthly payment and interest should be recalculated according to the remaining loans.

According to the different repayment methods, the borrower can choose to reduce the term or amount. Most banks can offer five prepayment methods for customers to choose from:

First of all, all loans are repaid in advance, that is, customers will pay off all the remaining loans in one lump sum. (There is no need to repay interest, but the interest paid is non-refundable)

Second, some loans will be repaid in advance, and the remaining loans will keep the monthly repayment amount unchanged, thus shortening the repayment period. (save more interest)

Third, repay some loans in advance, reduce the monthly repayment amount of the remaining loans, and keep the repayment period unchanged. (Reduce the burden of monthly payment, but save more than the second one)

Fourth, some loans are repaid in advance, and the monthly repayment amount of the remaining loans is reduced, and the repayment period is shortened. (save more interest)

Fifth, the remaining loans keep the total principal unchanged and only shorten the repayment period. (The monthly payment increases and the interest decreases, but it is relatively uneconomical)

Extended data:

Precautions for prepayment

First of all, you must ask the requirements for repaying the loan in advance.

If the borrower wants to repay the loan in advance, it must be repaid for more than half a year, or even individual banks require repayment for more than one year. Banks generally require borrowers to submit written or telephone applications 15 working days in advance. After receiving the borrower's application for early repayment, the bank needs to examine and approve it, so it usually takes about one month.

Second, the documents for prepayment need to be prepared.

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.

Third, don't forget to surrender and lift the mortgage when repaying the loan in advance.

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.

Fourth, not everyone is the most suitable to repay the loan in advance.

Compared with the current CPI, the 30% interest rate of the loan customers who have signed the contract can be said to be very low, and the capital utilization cost of these buyers is very low, so it is not recommended to repay the loan in advance.

Baidu encyclopedia-repaying loans in advance

Is it interest or principal to pay a large sum of money to buy a house?

With the national benchmark interest rate unchanged:

Average capital: the total monthly payment decreases month by month, and the principal remains unchanged. At first, the repayment interest was more, and the repayment pressure was greater, but the interest was saved;

Matching principal and interest: the total monthly payment remains unchanged, which is convenient for memory. The principal part increases month by month, the interest part decreases month by month, and the repayment pressure is relatively small;

skill

Which repayment method is more suitable, it is suggested to choose according to your own situation.

Is the mortgage still a large sum of money the principal?

Large repayment is a kind of prepayment. Generally speaking, large repayment also pays the loan principal. After receiving the large repayment, the bank will recalculate the remaining principal to be repaid. If the original monthly payment is maintained, the repayment period will be shortened. After recalculating the monthly repayment amount, the monthly repayment amount will be reduced, but the original repayment period will remain unchanged.

For large repayment, it is best to choose the repayment method of shortening the service life, because the interest will only receive the interest after shortening the service life. However, early repayment at any time can reduce the total loan interest, so large repayment can effectively save the loan interest.

How many days after the credit card expires?

Each bank's credit card has a certain grace period for repayment, during which the repayment will not be recorded in the credit report. Most bank credit card repayment grace period is 3 days, and the application does not need to take effect automatically. However, some banks have the following special provisions on the grace period for repayment:

Bank of China 1:

The credit platinum card of China Bank has a grace period of 9 days, while the other credit cards of China Bank have a grace period of 3 days.

2. Postal Bank:

The grace period for repayment by China Post Bank is 4 days.

3. Guangfa Bank and Citibank:

Both Guangfa Bank and Citibank need to apply for a special grace period for repayment, which is generally about 3 days.

4. Agricultural Bank:

The grace period for repayment of China Agricultural Bank is 2 days.

5. ICBC:

ICBC's Star Card and Struggle Card can have a grace period of three days, while ICBC's other credit cards have no grace period.

What are the consequences of overdue credit cards?

If the overdue period reaches a very serious state, it will constitute a malicious overdraft and will be identified as credit card fraud. Sentencing standards will be implemented according to the amount of our malicious overdraft, including fixed-term imprisonment or life imprisonment of less than 5 years, more than 5 years and less than 10 years, and fines of more than 20,000 yuan and less than 200,000 yuan, more than 50,000 yuan and less than 500,000 yuan, or confiscation of property.

If the credit card is overdue for more than 6 times in two years, then you can't apply for a provident fund loan. A short-term careless overdue once or twice may still be possible, but if we are overdue three times in two years, then our provident fund loan will be out of reach. Because ordinary banks or provident funds mainly rely on the credit records of lenders in the last two years when handling credit business. Therefore, those cardholders who want to apply for provident fund loans to buy a house must pay back on time when using their credit cards.

If the overdue time is not very serious, then theoretically we can still handle the bank loan business. Many cardholders who want to borrow money to buy a house are overdue and have bad records in credit reporting. In this case, if you apply for a commercial loan, most banks will raise your benchmark interest rate by at least 10% due to your credit problems. Obviously, the cost of buying a house will increase greatly. If we are seriously overdue for many times, then you will be directly refused the loan by the bank. Therefore, when using a credit card, considering that we have plans to buy a house in the future, we must not overdue it.

Does the large repayment pay the principal or interest?

For prepayment, whether it is equal principal and interest or average capital, if prepayment is chosen, the repayment amount is principal, not interest.

This is because when the bank calculates the loan, it will calculate the principal, so when we repay the loan in advance, it will also pay the principal, and the interest is generated according to the amount of the principal and the time of borrowing, so after we repay the loan in advance, the interest will be recalculated.

Give a simple example:

If we borrow 1 10,000 yuan from the bank with a loan interest rate of 4.9% and a term of 20 years, the total repayment will be about1570,000 yuan, and the interest will be close to 600,000 yuan.

If we repay 200,000 yuan in advance, the loan principal will become 800,000 yuan regardless of whether the policy allows it or not and whether the liquidated damages occur. At this time, the comprehensive repayment will become about 1.25 million yuan, and the total interest will be reduced by 45,000 yuan.

Repay the loan in advance in the early stage of the loan or be charged liquidated damages.

Under normal circumstances, banks do not allow borrowers to repay loans in advance when the loan is less than one year, and they also have different requirements for liquidated damages for early repayment. Some banks will be charged 3-6 months' interest if they prepay less than one year, and some banks will not charge liquidated damages if they prepay after five years. The specific demand depends on the regulations of the lending bank.