You can repay the mortgage in advance to reduce the monthly payment, which will reduce the pressure on the lender's monthly payment and reduce the interest payable by the repayment person every month. However, the prepayment of mortgage requires an appointment in advance, and the time of each bank is different. If it is quick, it can be returned the next day. If it is slow, it may take several months. The materials needed for prepayment are relatively simple. You just need to prepare your loan contract, ID card and repayment bank card, deposit the money in this bank card, go to the bank to fill out the repayment application form and wait for the bank to deduct money.

1. Main methods of advance payment:

(1) Pay off all in advance: When there are sufficient funds, the repayment person can choose to pay off all in advance.

(2) Partial prepayment: Partial prepayment can be divided into the following two ways: one is to shorten the loan period and keep the monthly repayment amount unchanged; The second is to reduce the monthly repayment amount and keep the loan life unchanged. Among the two methods of partial repayment, the former can save more interest than the latter, but some banks default to the first repayment method, that is, the one with high interest. The reason for this is that the interest paid by buyers is less, which means that the bank can get less income, and the repayment method with high interest can guarantee the bank's income. Of course, there are differences in policies between banks, and the implementation will be different.

2. Monthly mortgage payment after prepayment:

The monthly payment is unchanged, which only shortens the repayment period. In other words, repaying part of the loan in advance reduces the total amount of the loan, while the monthly repayment amount of the mortgage remains unchanged. And repaying the mortgage in advance may face liquidated damages. It is recommended to contact the bank staff before deciding to repay the mortgage in advance to avoid paying liquidated damages. Major banks have different rules for repaying mortgages in advance.

3. How to collect the liquidated damages for prepayment:

(1) is calculated according to 2%-5% of the outstanding balance at the time of prepayment.

(2) Charge interest for several months, for example, default interest for less than one year for three months; If the loan has been repaid for one year but less than two years, the penalty interest will be two months; If the loan has been repaid for more than two years, there is no penalty interest.