What is the process of repaying the mortgage in advance?
1. The customer informs the bank in advance (usually 10 working days to 1 month in advance).
2. The bank calculates the total amount owed by the customer, and designates the customer to pay off the money in the bank and pay the interest of the current month; The bank will send the deed to the law firm designated by the contract, handle the cancellation of the mortgage loan, and register with the real estate management department; After the lawyer has gone through all the formalities, he will inform the owner to take back all the property contracts. Some banks return the real estate license or purchase contract directly to customers as long as the procedures are complete without going through a lawyer.
Pay off all the loans in advance, and don't forget to get your money back from the insurance company and the tax department. After the borrower repaid all the loans in advance, the original individual housing loan contract of Jiabao was also terminated in advance. According to the relevant regulations, the borrower can bring the original insurance policy and proof of paying off the loan in advance, and return the premium paid in advance to the insurance company on a monthly basis.
4. The calculation formula of early repayment of loan and refund of insurance premium is: early repayment of loan and refund of insurance premium = present value of insurance premium paid in early repayment-present value of insurance premium occupied before early repayment in early repayment.
5. If the provident fund is repaid in advance, there is no need to pay liquidated damages. If the borrower repays the provident fund loan in advance, there is no need to pay liquidated damages. However, it should be noted that before prepayment, an application should be made to the loan bank in advance, and relevant materials should be prepared according to the requirements of the bank, and repayment procedures can only be handled after approval.
What should I pay attention to when repaying my mortgage in advance?
1. Pay attention to the repayment period.
At present, there are two main ways of mortgage repayment: equal principal and interest and average principal.
Matching principal and interest repayment method: with the progress of repayment, the proportion of principal increases month by month and the proportion of interest decreases month by month. If the repayment time is close to 1/2, at this time, most of the interest has been paid off, and the remaining amount and principal account for a large proportion, so it is not cost-effective to repay in advance.
Average repayment method: when the repayment time exceeds 1/3, half of the interest has been repaid. At this time, prepayment is of little significance.
Step 2 make an appointment in advance
Different from online loans and bank credit loans, users can directly operate prepayment on the APP. For early repayment of mortgage loans, they must call the bank hotline in advance to make an appointment. After the appointment is successful, they can go to the online outlets to go through the prepaid procedures.
3. Check whether there is any liquidated damages.
Early repayment itself is a breach of contract, so many banks will charge a certain penalty for early repayment. Therefore, before repaying the loan in advance, you must check the loan contract or ask the bank staff whether you will charge liquidated damages, and then calculate for yourself to see if it is cost-effective.
The above are the relevant contents of the processes needed to repay the loan in advance. You can repay the loan in advance according to these procedures, but you should also understand the precautions for repaying the loan in advance.