Does ICBC mortgage repay the principal or interest in advance?
The prepayment of mortgage is the principal. After the lender repays the loan in advance, the bank will lose some interest, so it will charge liquidated damages. If ICBC repays the mortgage in advance, it will charge liquidated damages less than one year in advance, which is about 5% of the prepayment amount. If the loan is repaid in advance after one year, no penalty will be charged. You can choose to repay a part in advance, or you can choose to pay it all off.
Mortgage prepayment is divided into two situations.
Repaying the loan in advance, in addition to the principal (loan balance), there is interest+default interest for the month. The prepayment of mortgage is divided into two situations, one is full prepayment and the other is partial prepayment.
1 Full prepayment, that is, one-time settlement of mortgage principal and interest. After all prepayment, the interest will be calculated from the day when the principal and interest of the bank are paid off. In other words, as long as you borrow from the bank, the interest will be calculated.
2. Partial prepayment means that only a part of the loan principal and interest is repaid, and the remaining principal and interest are not settled. The outstanding loan principal and interest shall be subject to the loan interest rate agreed in the original loan contract.
The above is the introduction of ICBC's repayment of principal and interest in advance. I hope it will help you. Before choosing to repay the mortgage in advance, you can go to the bank to consult whether it is feasible to repay the mortgage in advance, and whether there are any liquidated damages. After all, liquidated damages are not a small amount, which can reduce unnecessary costs.