First, the conditions that need to be met to repay the loan in advance
1. If the borrower wants to repay the loan in advance, it must have been repaid for more than half a year, or even more than one year as required by individual banks.
Banks generally require borrowers to submit written or telephone applications about 15 working days in advance. After the bank receives the borrower's application for repayment in advance, it has to be examined and approved, so it usually takes about one month. In addition, banks have different requirements for repaying loans in advance. For example, some banks stipulate that early repayment of loans is an integer multiple of 654.38 million yuan, and some banks need to charge a certain penalty.
2. If the borrower wants to repay the loan in advance, he usually needs to bring his ID card and loan contract to the bank for approval after applying by phone or in writing.
If the borrower has settled all the balance, the bank will deposit enough money to repay the loan in advance after calculating the remaining loan amount. If it is a customer or owner of the sub-mortgage business, it is best to find a professional guarantee institution to do entrusted notarization, so as to avoid the risk that the customer will not buy it after the owner repays in advance or the owner will raise the price after the customer pays the final payment with the down payment.
If you pay off the loan, don't forget to cancel the mortgage.
The borrower should bring the real estate license, settlement certificate and other rights certificate mortgaged in the bank to the office of the District Housing Construction Committee to understand the mortgage situation. In this way, your own property can be completely your own property.
Two. Matters needing attention in repaying loans in advance
Reminder 1: Don't forget to surrender.
After paying off all loans in advance, buyers should remember to surrender to insurance companies and other departments.
Experts reminded that after the lender repaid all the loans in advance, the original individual housing loan contract of Jiabao was also terminated in advance. According to relevant regulations, the lender can bring the original insurance policy and the proof of paying off the loan in advance, and return the premium paid in advance to the insurance company on a monthly basis. The insurance premium refunded by paying off the loan in advance is the present value of the insurance premium paid at the time of early return minus the present value of the insurance premium occupied before early return.
Reminder 2: joint loans do not need to repay provident fund loans first.
Provident fund loans, do you need to pay off the provident fund loans before applying for early repayment of commercial loans?
The answer is: no.
Only the money in the provident fund account must be used to pay off the provident fund loan first. If it is other self-owned funds, you can decide whether to use it to repay commercial loans or offset provident fund loans first according to your personal preferences and needs.
Reminder 3: apply for mortgage cancellation.
Because many lenders are indifferent to the mortgage, they often forget to go to the property right department to cancel the mortgage after prepayment. Although the loan has been paid off, the house is still in the property right department for the record, which will bring unnecessary trouble to future housing transactions. When the lender cancels, it needs to apply for the mortgage return certificate in the bank, get the cancellation registration form from the mortgage property department (be careful not to do it across regions), and finally attach the purchase contract or property certificate to cancel the mortgage.
Reminder 4: The citizen and the bank re-sign the supplementary agreement.
Because the lower limit of mortgage interest rate of banks and branches has not been finalized, there are some uncertainties in the interest rate of remaining mortgage payment. Therefore, we should try our best to provide banks with excellent repayment records, credit certificates and good income level certificates in order to obtain the lowest mortgage interest rate limit of banks as much as possible.
Three or four situations are not suitable for early repayment.
1, when signing the loan contract, enjoy the interest rate discount of 30% to 8.5%. As we have enjoyed a lower discount rate, we are now in the channel of interest rate reduction. If the central bank doesn't cut interest rates during the year, even if the latest interest rate is implemented at 65438+ 10/in June next year, the interest rate will only be lower than that in the previous period. If such a customer repays the loan in advance and then borrows money to buy a house, the bank will implement the latest loan policy, and the benchmark interest rate will rise by 1. 1 times, and the borrower will lose more than it gains.
2. Buyers whose repayment period of equal principal has passed 1/3. Since the average capital divides the total loan amount by half of the cost, the repayment interest is calculated according to the remaining principal. In other words, the later this repayment method is, the less the remaining principal will be, so the less interest will be generated. In this case, when the repayment period exceeds 1/3, the borrower has already paid nearly half of the interest, and the later repayment is mostly the principal, and the interest level has little effect on the repayment amount.
3. Buyers who have reached the medium-term repayment of principal and interest. Matching principal and interest repayment adds up the total principal and interest of mortgage loans and distributes them equally every month. The monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled monthly. In other words, the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. By the middle of repayment, most of the interest has been paid off, so it is of little significance to repay the loan in advance.
4. If you have other good investment and wealth management projects, such as stocks, funds, bonds, wealth management products, etc. Or both buyers and sellers need liquidity. If the return on investment is higher than the loan interest rate, there is no need to choose to repay the loan in advance.
Finally, the prepayment of mortgage needs to be chosen according to its own actual situation, and it is forbidden to blindly follow the crowd.
(The above answers were published on 2015-11-21. Please refer to the actual situation for the relevant procurement policies at present. )
For more real estate information, policy interpretation and expert interpretation, click to view.