1. Full prepayment, that is, the buyer collects the arrears and pays off all the remaining loans and mortgages at one time, which is suitable for people with abundant funds.

2. Partial prepayment, shortening the loan life, and keeping the monthly repayment amount of the remaining loans unchanged, which is suitable for people with stable jobs and stable incomes.

3. Keep the repayment period unchanged and reduce the monthly repayment amount of the remaining loans, which is suitable for people whose family income is expected to decline or whose family expenses will increase in the future.

Advantages and disadvantages of repaying loans in advance

First, the benefits:

1. owing on the loan in advance should consider various situations and precautions. General banks now stipulate that citizens can apply in writing to repay part or all of the loan in advance with the consent of the bank during the loan period and within one year after the loan is issued. Banks have different regulations on early repayment of loans, so citizens must understand the operating procedures of loan banks and make an appointment in advance before deciding to repay loans in advance.

If the interest rate is raised, the new interest standard will be calculated at the beginning of the new year. Therefore, even if it is necessary to repay the loan in advance, buyers should seize the opportunity to repay the loan in advance before the new interest takes effect at the end of the year. After the buyers pay off all the loans in advance, don't forget to surrender to the insurance company and other departments.

3. After the lender repays all the loans in advance, the original individual housing loan contract of Jiabao is also terminated in advance. Therefore, according to the relevant regulations, the lender can bring the original insurance policy and proof of early repayment to the insurance company to refund the premium paid in advance on a monthly basis. The premium refunded by prepayment is the present value of the premium paid in advance minus the present value of the premium occupied before prepayment.

Second, the shortcomings:

1. Repaying the loan in advance is unnecessary. Once you consider repaying the loan in advance, buyers should also pay attention to which repayment method to choose when lending. At present, the repayment methods of bank housing loans are "average capital repayment method" and "equal principal and interest repayment method". "

2. The average capital repayment method means that the monthly repayment of the principal remains unchanged and the interest gradually decreases. During this period, if you choose to repay the loan in advance, the principal returned will be more and the interest expense will be relatively reduced; However, the "equal principal and interest repayment method" has the same monthly repayment amount. At the initial stage of repayment, the interest expense is the largest and the principal is the least. Later, the interest paid gradually decreased and the principal gradually increased.