It is cost-effective to pay off the mortgage in one lump sum after a few years

It is most cost-effective to repay the mortgage in one lump sum within the 3-5 years of the mortgage repayment. At this time, it does not matter whether it is equal amounts of principal or equal amounts of principal and interest. , the interest repaid is not much. If you repay in advance, you can save more interest, which is the most cost-effective. In addition, banks will generally accept early repayment after 3-5 years of repayment, and most banks will no longer charge liquidated damages. However, the specific provisions of liquidated damages for early repayment shall be subject to the provisions of the loan contract.

1. Pay attention to the time requirements for early repayment. Generally speaking, many banks have time requirements for home buyers to repay their loans in advance. Some banks stipulate that you must repay the loan for at least one year before you can apply for early repayment. Repay the loan, but some banks say you can apply for early repayment at any time. Among the state-owned banks, Bank of China and China Construction Bank need to repay the loan for one year before they can apply for early repayment, and ICBC needs half a year to repay the loan in advance. In addition, banks such as China Merchants Bank and Bank of Communications require one year to apply for early loan repayment, while Huaxia Bank stated that you can apply for loan repayment at any time.

2. Loan documents must be prepared. For borrowers who are ready to repay the loan early, they need to call or submit a written application before repaying the loan early, and then go to the bank with their ID card and loan contract. Approval procedures. If the borrower has paid off the entire balance, after the bank calculates the remaining loan amount, it will be easier for the borrower to deposit enough money to repay the loan early.

3. Don’t forget to surrender the policy. It doesn’t mean that the home buyer has paid off all the loan in advance. He also needs to surrender the policy to the insurance company and other departments. Here, we would like to remind all home buyers who are preparing to repay their loans in advance that after repaying the entire loan in advance, the original personal housing loan housing insurance contract will also be terminated early. According to relevant regulations, the lender can bring the original insurance policy and proof of early repayment of the loan to the house. The insurance company refunds premiums paid in advance on a monthly basis. The insurance premium returned when the loan is paid off early is the present value of the paid insurance premium at the time of early repayment, minus the present value of the insurance premium occupied before the early repayment at the time of early repayment.

4. Don’t forget to cancel the mortgage registration after paying off the mortgage loan. When a home buyer applies for a bank mortgage loan, he needs to go to the local real estate registration center to apply for mortgage loan registration. Therefore, after paying off the mortgage loan, the home buyer must , whether you repay the loan within the contract period or repay it in advance, you must pay attention to cancel the mortgage registration immediately after repaying the loan.

Please click to enter the picture description (maximum 18 words). I have paid off the mortgage for five years. Is it appropriate to pay it off in one go?

It is not appropriate to pay it off in one go.

In the later stage, the principal is basically repaid, because there is too much interest in the early stage. In the first half of the mortgage repayment cycle, higher interest is repaid, and in the later stage, half of the time is left to repay the mortgage instead of interest. Small, basically the main purpose is to repay the principal. If you choose to pay off the mortgage in one lump sum at this time, although it seems that there will be no pressure to repay the mortgage later, if there are other better investment methods for this fund, it can actually pass Earning interest from investment is more appropriate than paying off the mortgage in one lump sum.

A home loan, also known as a home mortgage loan, requires a home buyer to fill in an application form for a home mortgage loan to the lending bank and provide legal documents such as ID card, income certificate, house sales contract, and guarantee letter. After passing the examination and passing the certification documents that must be submitted as required, the lending bank promises a loan to the home buyer, and handles real estate mortgage registration and notarization based on the house sales contract provided by the home buyer and the mortgage loan contract entered into between the bank and the home buyer. Within the period specified in the contract, the loaned funds will be directly transferred to the account of the selling unit with the bank.

Loan application information:

1. Valid ID card and household register of the borrower;

2. Proof of marital status. If you are unmarried, you need to provide a certificate of celibacy, If you are divorced, you need to provide a court civil mediation letter or divorce certificate (indicating that you have not remarried after the divorce);

3. If you are married, you need to provide your spouse’s valid ID card, household register and marriage certificate;

4. Proof of income of the borrower (certificate of salary income for six consecutive months or local tax certificate);

5. Property ownership certificate of the property;

6. Guarantor (required Provide ID card, household register, marriage certificate, etc.).

Note:

1. You must have collateral to get a loan, and the sum of the loan amount and interest during the loan period cannot exceed 1/2 of the assessed value of the collateral;

2. Have a long-term and stable source of income that is sufficient to pay the monthly loan principal and interest;

3. Guarantor;

The loan requires payment of lawyer witness fees, mortgage registration fees, and mortgage property Insurance premiums, property appraisal fees, etc.

Generally, it takes about 1 month to get a loan.

Loan amount:

1. Residential houses: the loan amount can reach up to 70-80 of the appraised value;

2. Apartment houses: loan amount The maximum loan amount shall not exceed 60% of the appraised value;

3. Villa-type houses: the maximum loan amount shall not exceed 70% of the appraised price;

4. Commercial houses: the maximum loan amount shall not exceed the appraised price The price is 60. Is it cost-effective to pay off the mortgage early after five years?

No.

If the user chooses to repay the principal and interest in equal amounts in advance, because this repayment method requires more interest and less principal in the early stage,

then for the repayment that has already been made, It would be very uneconomical to repay the loan in advance after 5 years; it would be more cost-effective if the user chooses to repay the loan in equal amounts of principal.

Whether it is cost-effective to pay off a mortgage loan early is related to the repayment method and the number of years of repayment, so it is not always cost-effective to pay off a mortgage loan early.

For users who know how to invest and manage money, it is better to invest the money in a more effective way than to repay the mortgage in advance, which can better realize the appreciation of wealth.

Is the total amount of early repayment the same for 30 years and 5 years?

It’s different. If the mortgage has been repaid for 5 years after 30 years, the total amount of early repayment will definitely change. After the user chooses to repay in advance, since part of the principal has been repaid before, the remaining loan principal and interest will be reduced, so the total amount after early repayment is less than the total previous repayment amount.

There are generally three ways to repay a mortgage loan in advance, as follows:

1. Prepayment in full means that the user repays all the remaining mortgage loan in advance in one go. The repayment method does not require interest, but the interest paid will not be refunded;

2. Partial early repayment shortens the loan term, which refers to repaying part of the mortgage in advance, and maintaining the monthly repayment of the remaining loan. If the amount remains unchanged, the repayment period will be shortened, which can save a lot of interest costs;

3. Partial early repayment will reduce the remaining monthly repayment of the loan while keeping the repayment period unchanged. This will This method can reduce the monthly repayment pressure, but it is not as cost-effective as the second method.

To sum up, different prepayment methods for mortgage loan early repayment have different impacts. Some repayments will be cost-effective, and some will be higher than the normal repayment amount. Because early repayment is a breach of contract, you need to pay a certain amount of liquidated damages. Sometimes the liquidated damages paid for early repayment are much greater than the interest paid for later repayments on time, so you still need to make a careful calculation before making your choice.

In order to avoid mortgage risks, banks generally require borrowers to provide guarantee certificates from legal persons, other economic organizations or natural persons with sufficient repayment capacity. If you can find friends or relatives who are willing to provide guarantee and have financial strength, they can provide the bank with a written document and credit certificate that is willing to guarantee. If not, you need to go to a professional guarantee company and they will provide a guarantee. The fee paid at this time is the mortgage guarantee fee.

Application materials

1. Valid ID card and household registration book of the borrower;

2. Proof of marital status. If you are unmarried, you need to provide a certificate of celibacy or divorce. If you are married, you need to provide a court civil mediation letter or divorce certificate (indicating that you have not remarried after divorce);

3. If you are married, you need to provide your spouse’s valid ID card, household registration book and marriage certificate;

4. Proof of income of the borrower (certificate of salary income for six consecutive months or local tax certificate);

5. Property ownership certificate of the property;

6. Guarantor (identity required) Certificate, household register, marriage certificate, etc.)