1. prepayment, that is, the customer pays off all the remaining loans at one time. (There is no need to repay the interest, but it will not be refunded if it is paid)
2. Some loans are repaid in advance, and the monthly repayment amount of the remaining loans remains unchanged, shortening the repayment period. (save more interest)
3. Partial prepayment, the monthly repayment amount of the remaining loan is reduced, and the repayment period remains unchanged. (Reduce the monthly payment burden, but less than the second type)
4. For partial prepayment, the monthly repayment amount of the remaining loans will be reduced and the repayment period will be shortened. (save more interest)
5. The total principal of the remaining loans remains unchanged, but the repayment period is shortened. (The monthly payment will increase and the interest will decrease, but it is relatively uneconomical.)
Precautions for prepayment of bank mortgage 1. Customers should first ask the handling bank whether there is a clear limit on the time for prepayment of mortgage loans. If yes, you need to apply for early repayment after the specified time expires, otherwise you may need to pay a certain penalty. Bank regulations may be different, for example, one year, three years.
2. The collection standards of liquidated damages for prepayment are also different. Some will be charged at around 1% to 3% of the prepayment amount, while others will directly charge interest for several months as liquidated damages (please consult the customer service of the handling bank for details).
3. Some banks require that early mortgage repayment must be made by telephone in advance, and they can only go to the outlets for early repayment after the appointment is successful; Others can operate prepayment directly on online banking/mobile banking.
4. After repaying part of the mortgage in advance, the subsequent interest will not be calculated according to the total loan amount, but will be recalculated according to the remaining outstanding loans. Therefore, repaying the mortgage in advance can reduce certain interest.
5. After that, customers can choose to reduce the monthly payment according to their own needs and repayment ability, and keep the repayment period unchanged or shorten the repayment period to keep the monthly payment unchanged.