Mortgage prepayment process
The three basic processes of prepayment of mortgage are: preparing funds, applying for repayment and going through formalities.
First, prepare funds. First of all, repaying the mortgage in advance can pay off the loan in one lump sum or repay part of the loan in advance. To understand the requirements of early repayment in the loan contract, ask the bank whether it needs to pay a certain penalty for early repayment (at present, banks generally do not charge). If the contract indicates that liquidated damages will be collected, it is necessary to see clearly how much to collect;
Second, apply for repayment. You can prepay through mobile banking-My Loan-Loan Record-and choose to prepay in full, so that the buyer can pay off all the remaining loans at one time and the remaining interest can be exempted; If partial prepayment is selected, the monthly repayment amount of the remaining loans will be reduced accordingly, and the repayment period will remain unchanged.
Third, go through the formalities. If you pay off the mortgage in advance in one lump sum, you need to go through the mortgage cancellation procedures with the loan bank, and you need to bring your ID card, personal seal, loan and guarantee contract, and the original real estate license (if the real estate license has been done, you need to borrow it from the Housing Authority, if the real estate license has not been done yet, you don't need the real estate license), and you need to go through the cancellation procedures on working days.
After the formalities are completed, you can get the notice of cancellation of mortgage issued by the Housing Authority by waiting for the phone call from the bank.
Pay attention to the following three points when repaying the mortgage in advance:
First, if it is a provident fund and a commercial portfolio loan to buy a house, it is recommended to repay the commercial loan in advance, because the commercial loan interest rate is high; If you only use provident fund loans to buy a house, it is not recommended to repay the loan in advance. The cost of provident fund loans is low, and it will be more cost-effective gradually.
Second, different banks have different provisions on the liquidated damages for mortgage prepayment. Most of them are collected within 1-3 years, some are collected in the first year, and some are repaid at any time. It is necessary to understand the loan contract and not repay the loan during the default period.
Third, after the mortgage is paid off, the cancellation procedures must be handled in the mortgage of the house, because the mortgagor's house is mortgaged in the bank. After the loan is paid off, it is necessary to cancel the mortgage records of the bank and the Housing Authority. When the formalities are completed, the house will be completely yours.
Finally, the mortgage interest rate fluctuates with reference to the LPR interest rate and is adjusted once a year. If the mortgage interest rate is high, you can really choose to repay the loan in advance.