With a 30-year mortgage, if you want to repay it early, the more appropriate repayment date is within 4-5 years after the loan. When applying for a mortgage to buy a house, many home buyers default to equal principal and interest. This loan method has higher interest rates in the first few years, and then decreases year by year. By the time the lender wants to repay the loan in advance, more than half of the loan interest has actually been repaid. So it’s not worth it to repay it in advance. What is the appropriate time to repay a 30-year mortgage in advance

If you want to repay a 30-year mortgage in advance, the more appropriate repayment date is within 4-5 years after the loan. When applying for a mortgage to buy a house, many home buyers default to equal principal and interest. This loan method has higher interest rates in the first few years, and then decreases year by year. By the time the lender wants to repay the loan in advance, more than half of the loan interest has actually been repaid. So it’s not worth it to repay it in advance. Things to note for early repayment of mortgage loans

1. Make an appointment in advance

One year after the repayment period expires, if the bank agrees, you can apply for early repayment in writing. Generally speaking, It takes 2-7 working days for banks to process this business; each bank has different regulations on early repayment of loans. Lenders must understand the operating procedures of the lending bank before deciding to repay the loan in advance.

2. The loan documents must be prepared

If you want to repay the loan in advance, you usually need to go to the bank to go through the relevant approval procedures with your relevant information after making a phone call or written application. If it is a borrower who has paid off the entire balance, after the bank calculates the remaining loan amount, it will be convenient for the borrower to deposit enough money to repay the loan in advance; if it is a customer or owner of a remortgage business, it is best to find a professional guarantee The agency will do the entrusted notarization.

3. How to calculate the interest rate after the interest rate cut

As we all know, the new interest rate is usually calculated at the beginning of the new year, so if you want to repay the loan early, you must seize the opportunity and try your best to Repay the loan in advance at the end of the year before the new interest rate takes effect. In addition, after repaying the entire loan in advance, the lender must remember to surrender the policy to the insurance company and other departments.