1, prepay in full.

If the borrower applies to the bank for personal commercial housing loans and personal housing provident fund loans, with the consent of the lending bank, the borrower can repay all the outstanding principal in advance at one time, and the interest will be paid off together with the principal. The lender does not charge interest during the lead time, nor does it refund or reduce the loan interest charged at the original contract interest rate. ?

If the borrower applies to the bank for individual housing portfolio loan, and the borrower returns the individual housing provident fund loan in advance and maintains the individual housing commercial loan, he may apply to the original bank for portfolio loan, and the loan bank will handle the repayment procedures of the provident fund loan on his behalf; Individual housing commercial loans are handled by banks that originally handled portfolio loans.

2. Partial advance payment

Personal housing provident fund loans can only be repaid in full in advance, and some commercial banks can repay some personal housing commercial loans in advance, with different ways to repay some in advance.

There are two ways to handle partial prepayment: the first way is to keep the loan term and interest rate unchanged according to the original loan contract, and after partial prepayment, the monthly repayment amount will be reduced accordingly; The second method is to shorten the loan term, and the original loan contract interest rate remains unchanged. After partial prepayment, the monthly repayment amount remains unchanged.

Data expansion:

Prepayment is generally divided into two ways: partial prepayment and full prepayment. According to the different repayment methods, the borrower can choose to reduce the term or amount. It is understood that at present, most banks can provide five ways to repay loans in advance for customers to choose from:

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.)

Financial experts suggest that when repaying in advance, the principal should be reduced as much as possible, the loan term should be shortened and the interest should be paid less.

Source: Baidu Encyclopedia repays the loan in advance.