Of course, after prepayment, users can also choose to reduce the monthly payment and keep the repayment period unchanged.
Friends who borrow money to buy a house know that although the mortgage interest is relatively low, the repayment time is long and the total interest cost is high. Fortunately, the mortgage can be repaid in advance, even if it can't be paid off in one lump sum, part of it can save interest in advance.
No matter in the form of loans with average capital or equal principal and interest, after a part of the house payment is repaid in advance, the rest will be repaid by the original repayment method, which only shortens the repayment period, thus reducing the repayment interest, and recommends the method of "shortening the repayment period without changing the monthly payment".
Early repayment usually requires the borrower to repay the loan for more than one year, and then submit a written application to the bank one week and one month in advance to agree on the repayment date. At the appointed time, take your ID card and signed loan contract with you when you apply for mortgage, fill in the application form and agreement for prepayment at the loan handling outlet, and deposit the money in the repayment card.
After repaying the loan in advance, it is necessary to re-sign the loan contract with the bank. For outstanding loans, the repayment period or monthly repayment amount should be re-agreed. Generally, there are two options: shortening the fixed period of monthly payment and reducing the fixed period of monthly payment. If you want to reduce the monthly repayment amount without changing the loan term, you should choose to reduce the monthly repayment amount.
The characteristics of this repayment method are that the repayment period has not changed, the monthly repayment amount has decreased, and the repayment pressure of the borrower has decreased, but the repayment period is still so long, so even if the interest is saved, not much money can be saved. Compared with the fixed term of supply next month, the interest saved is still relatively large. How much can you save? You can use the mortgage prepayment calculator to calculate it yourself.
But for the borrower, it is not to say which way to choose to save interest, but mainly to judge according to his repayment ability and choose the most favorable way for himself, so as to avoid lowering his quality of life in order to repay the mortgage, which will be more troublesome at any time.