After paying off part of the mortgage in advance, customers can choose to shorten the repayment period, which can also reduce the debt as soon as possible; You can also choose to reduce the monthly payment, which can reduce the monthly repayment pressure. Also, the interest that the customer has to pay after repaying the mortgage in advance can also be much less than the monthly repayment according to the repayment plan. And pay off the mortgage as soon as possible, you can also go through the formalities of understanding the mortgage as soon as possible, and the house can really belong to you as soon as possible.
Disadvantages:
Because many banks have regulations, customers must repay for a certain period of time every month according to the repayment plan. If the customer applies for prepayment, it is likely to pay a certain penalty.
Housing loan means that the buyer fills in an application for housing mortgage loan to the bank and provides legal documents such as ID card, income certificate, housing sales contract and guarantee. The bank promises to provide loans to the buyer, and after passing the examination, it will handle the mortgage registration notarization according to the house sales contract provided by the buyer and the mortgage loan contract signed between the bank and the buyer, and the bank will directly transfer the loan funds to the buyer's account. Housing sales units should go to the bank within the time limit stipulated in the contract.
Mortgage repayment method
Matching principal and interest is common in mortgage loans, and the repayment method with the same monthly repayment amount is also applicable to some consumer finance repayment methods. This repayment method is suitable for people who will not repay in advance! In other words, you can pay it back as many years as you want, and it is best not to pay it back in advance. Because, although the total monthly repayment is the same, the ratio of interest to principal is different. The interest ratio in the previous period is higher than the principal ratio. If you repay in advance, others will still earn interest.
In the average capital, mortgage repayment methods are generally available, and loans such as consumer finance rarely appear. This repayment method has a large amount of repayment in the early stage and will be less and less in the later stage. Suitable for people who have little repayment pressure at this stage and can repay in advance at any time. Because its interest decreases with the decrease of your principal, there is no loss in prepayment.
Interest first, capital later, this is easier to understand. In the early stage, only interest is paid, not principal. In the last month, all the principal will be repaid in one lump sum. This person who is suitable for doing business and needs cash flow has a large and flexible capital turnover rate, but it is necessary to carefully consider whether the last fund can be put in place in time. Interest before capital generally appears in credit and mortgage loans. The mortgage has no interest first and then the principal.
Whether it is a commercial loan or a housing provident fund loan, the principal of each prepayment must be more than 6,543,800 yuan, and individual commercial banks also propose a minimum of 50,000 yuan (depending on the contract).
Most banks have certain requirements for the prepayment of commercial loans, for example, they can only apply for repayment for more than 6 months, and some banks say that they can only apply for prepayment twice in one year, and partial prepayment of housing provident fund loans is not limited by time and times, as long as the prepayment amount is not less than 1 10,000 yuan.