2. Remove the mortgage. After completing the settlement procedures of the house loan, you need to bring your ID card, loan settlement certificate and other documents to the housing management department to go through the formalities of dissolving the house property, because only after going through the formalities of dissolving the house property can you transfer the house property to your own name and truly own the ownership of the house property.
3. Go through the surrender procedures. When banks handle mortgage loans, they often need to handle some related insurance business as a guarantee, and when the mortgage is paid off, they naturally need to go to the insurance company for surrender procedures.
4. Procedures for refunding the deposit. Loan to buy a house may have to pay a deposit at the developer, so after the mortgage is paid off, you need to go to the developer to go through the formalities of refunding the deposit.
What are the best ways to repay the mortgage in advance?
1. One-time prepayment: If the buyer chooses one-time prepayment and pays off all the mortgage principal, it is recommended to apply for prepayment after the repayment time is over 2 years. Because most banks have regulations, if the buyers choose to repay the loan in advance, if the repayment period is less than 2 years, they need to charge a penalty of about 3% or a handling fee.
If the buyers choose to repay the loan in advance after the expiration of two years, many procedures can be saved.
2. Repay part of the loan in advance: If the buyer chooses to repay part of the loan in advance, the repayment method is equal principal and interest, so it is recommended to calculate how much mortgage principal he has not repaid. Because under the repayment method of equal principal and interest, the more unpaid principal of the buyers, the more interest.
If the buyer still has more than half of the principal outstanding, it is more cost-effective to choose to repay the loan in advance, because it can reduce a lot of interest. However, if the mortgage principal of the buyers has been repaid a lot, there is no need to choose to repay the loan in advance, because the basic repayment of the buyers behind is interest.
In addition, it is also necessary to remind buyers that when repaying loans in advance, it is best not to choose the method of "keeping the remaining loan principal unchanged and shortening the repayment period". This method will increase the monthly payment burden of buyers and increase risks, which is not very cost-effective compared with other methods.