The calculation method for early repayment of a mortgage is: the amount of early repayment and the additional interest for early repayment. The formula for calculating the interest for early repayment is: additional interest = remaining principal of the last repayment * Monthly interest rate/30*actual number of days to pay off the loan.

Since early repayment includes the remaining loan in advance and the remaining part of the loan in advance, the calculation method of interest is slightly different.

Prepayment is the amount paid by the borrower in excess of the monthly principal and interest payment. A prepayment that does not fully repay the mortgage is called a partial prepayment. Through contractual arrangements, early repayment is prohibited within an agreed period, which is called the lock-in period. The lock-in period ranges from 2 to 10 years. After the lock-in period, prepayment protection often takes other forms, such as prepayment penalty points or yield maintenance fees.

Prepayment includes three situations: full repayment in advance, partial repayment in advance and the loan term remains unchanged, and partial repayment in advance while shortening the loan term. Lending banks can only accept applications for early repayment from borrowers starting from the second repayment month of the personal loan. Although early repayment can save interest expenses, there are four types of home buyers who are not suitable for early repayment.

Procedures for early repayment:

Full repayment in advance: After the loan bank has reviewed the relevant materials and they are correct, the loan bank will proceed with the full repayment procedure in advance.

Partial repayment in advance and the loan term remains unchanged: The lending bank instructs the borrower to fill in the relevant agreement. If the original loan guarantee method is mortgage insurance and the mortgage registration has not been completed, you need to bring the original policy, your ID card and the relevant agreement to the insurance company designated in the city center to go through the insurance reduction procedures. The final signed agreement should be sent to the loan bank in a timely manner Intersection center.

For borrowers who choose mortgage insurance as the original loan guarantee method and the mortgage registration has been completed, and borrowers who choose non-mortgage insurance, apply for partial repayment in advance and shorten the loan term: the lending bank guides the borrower to fill in the relevant agreement and sign The completed agreement should be sent to the corresponding branch center in a timely manner by the lending bank.

If the original loan guarantee method chooses mortgage insurance and the insurance is still within the insurance period, and the mortgage registration has not been completed: the borrower can apply for partial repayment in advance and shorten the loan term, and can directly go to the guarantee center to apply.

According to bank regulations, customers who want to repay their loans early must submit a written application one week to one month in advance and agree on a repayment date. Then according to the agreed date, bring your ID card and the loan contract signed with the bank to the bank to fill out the loan repayment application form and early loan repayment agreement, and according to the bank's requirements, deposit the required loan repayment into the account where you withhold the loan principal and interest. , it will be automatically deducted by the bank.