To pay off the mortgage early, do I need to pay off all the money at once?

This can be decided according to your own specific economic situation. If you pay off your mortgage early, you don’t need to pay it off all at once. Borrowers who pay off their mortgage early can choose to pay off part of it or all of it early, so there is no requirement that the early repayment be paid off in one lump sum. Therefore, it still depends on your own estimation and judgment of future economic conditions.

Extended information:

Loan means that banks, credit unions and other institutions lend money to units or individuals who use the money, generally stipulating interest and repayment dates. Loans in a broad sense refer to the general term for lending funds such as loans, discounts, and overdrafts. Banks invest their concentrated currency and monetary funds through loans, which can meet the society's need for supplementary funds to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

Mortgage, also called personal housing loan. A personal housing loan is a type of consumer loan, which refers to a loan issued by a lender to a borrower for the purchase of an ordinary house for self-use. When a lender issues a personal home loan, the borrower must provide a guarantee. If the borrower is unable to repay the principal and interest of the loan when due, the lender has the right to dispose of its collateral or pledged property in accordance with the law, or the guarantor shall bear joint and several liability for the repayment of the principal and interest.

Loans are intended for natural persons with full capacity for civil conduct. The loan conditions are that urban residents purchase ordinary houses for self-use and have a house purchase contract or agreement, have the ability to repay principal and interest, have good credit, have a down payment of 30% of the funds required for house purchase, and have a loan guarantee recognized by the bank, etc.

Personal housing loans can only be used to purchase ordinary houses for self-use and urban residents to repair or build self-use houses, and cannot be used to purchase luxury houses. Personal housing portfolio loans refer to loans issued to the same borrower for the purchase of ordinary housing for self-use using housing provident fund deposits and credit funds as sources. It is a combination of personal housing entrusted loans and self-operated loans. In addition, there are housing savings loans and mortgage loans.

The borrower should provide the lender with the following information: identity document; proof of the borrower’s family’s stable economic income; a qualified housing purchase contract letter of intent, agreement or other approval document; a list of mortgages or pledges , proof of ownership and proof of the consent of the person with the right to dispose of the mortgage or pledge; proof of mortgage valuation issued by the competent department; written document of the guarantor agreeing to provide guarantee and certificate of creditworthiness of the guarantor; if applying for a housing provident fund loan, a housing provident fund management certificate is required Certification issued by the department; other documents or information required by the lender.

Can the loan be repaid in one go?

Loans can generally be repaid in one go in advance. As long as the customer has sufficient funds, he or she can go to the handling bank (lending institution) , platform) submit an application for early settlement. There are also many loan products that support borrowing and repaying at any time, and customers can just repay the money directly.

If the loan is paid off in one lump sum in advance, the interest is generally only accrued until the day the repayment is received. In this way, a certain amount of interest can be reduced and the customer can save a fee. Of course, if the customer does not have enough funds to repay it all at once, they can also choose to repay part of it in advance.

However, everyone also needs to pay attention to the fact that some loans have requirements for early repayment time, such as home loans and car loans. It is generally stipulated that customers must repay the full amount in installments on time in accordance with the repayment plan agreed in the loan contract. Repayment can be made in advance only after a specified period, otherwise a certain amount of liquidated damages will be charged. The stipulated time is usually one to three years, so for housing loans and car loans, it is best for customers to repay on schedule for one year before making early repayments.

Principles:

The "Three Principles" refer to safety, liquidity and efficiency, which are the fundamental principles for commercial bank loan operations. Article 4 of the "Commercial Bank Law of the People's Republic of China" stipulates: "Commercial banks take safety, liquidity, and efficiency as their operating principles, implement independent operations, bear their own risks, be responsible for their own profits and losses, and self-discipline."

1. Loan safety is the primary issue faced by commercial banks;

2. Liquidity refers to the ability to recover loans within a predetermined period or to realize cash quickly without loss, satisfying customers The need to withdraw deposits at any time;

3. Efficiency is the basis for the bank's continued operation.

For example, if a long-term loan has a higher interest rate than a short-term loan, the efficiency will be good. However, if the loan period is longer, the risk will increase, the safety will be reduced, and the liquidity will become weaker. Therefore, there must be harmony between the "three natures" so that there will be no problems with loans.

Significance:

Banks invest concentrated currency and monetary funds through loans to meet the supplementary funding needs of society to expand reproduction and promote economic development; at the same time, they can also obtain loans Interest income increases the accumulation of the bank itself. In China, the principle of paid use of loans is also used to promote enterprises to improve their operations and management; bank credit is also used as an important way to allocate funds and as an important economic lever to regulate and manage the economy.

Does a home mortgage loan need to be repaid in one go or every month?

A home mortgage loan requires monthly repayments, not a one-time repayment. A housing mortgage loan is a loan provided by a bank to ensure the safety of the loan by legally obtaining the lien and pledge rights on the borrower's property through a certain contract through the borrower's real estate, securities and other documents. . This kind of loan actually means that the debtor (mortgagor) legally transfers the property ownership to the creditor (mortgagee) to obtain the loan. During this period, if the debtor cannot repay the loan principal and interest on time, the creditor has the right to dispose of the mortgaged property and Loans that can be repaid first.

This kind of loan can reduce the creditor's loan risk and provides the most effective guarantee for the creditor to recover the loan. The use of mortgage loans in housing credit is based on the safety, liquidity and profitability of bank operating funds. Since most of the borrowers of this housing loan are individual residents, it is impossible for the bank to clearly understand the borrower's financial strength and creditworthiness, which increases the risk of bank loans, and mortgage loans are precisely when loan risks are relatively high. , providing creditors with an effective guarantee to recover their loans. Therefore, banks mostly use mortgage loans in housing loans to individual residents.

Is it appropriate to repay the loan in one lump sum?

It is not an easy thing to say that the mortgage loan can be paid off at once, but overall it is definitely more cost-effective. Maybe when you applied for a mortgage, you took the form of equal repayment of principal and interest, which means you repaid the interest in advance. However, one requirement for early repayment of the mortgage is that you cannot repay the money in advance some time ago. So it doesn’t feel like it’s particularly cost-effective, but in fact the pressure on you in the later stage will be reduced a lot, so it’s still an option. It would be much simpler if it is a repayment method with equal amounts of principal, because the interest is not paid back at once, but slowly, so paying off the mortgage in advance will save all subsequent interest.

Do you need to pay off the mortgage loan in advance?

What else should you pay attention to in advance?

1. You must ask about the requirements for early loan repayment

If a borrower wants to repay his mortgage in advance, he must have repaid the loan for more than half a year, and some banks even require that the loan has been repaid for more than one year. Banks generally require borrowers to submit written or telephone applications 15 working days in advance. Banks must review and approve the borrower's mortgage repayment application, so it usually takes about a month. In addition, various banks have different requirements for early repayment of mortgage loans. For example, some banks require early repayment to be an integral multiple of 10,000, and some banks require a certain amount of liquidated damages.

2. Documents for early repayment of mortgage loan need to be prepared

If the borrower wants to repay the mortgage loan in advance, he or she must bring his or her ID card and loan contract after applying by phone or in writing. Go to the bank to go through the 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. If you are a customer or owner of a remortgage business, it is best to find a professional guarantee agency to do entrusted notarization to avoid the risk of the owner not buying the property after the owner repays the loan in advance or the owner using the down payment to help the owner pay off the balance, so that the owner’s price increases.

3. Don’t forget to surrender and release the mortgage when repaying your mortgage early

After the lender settles the entire balance in advance, the bank will issue a settlement certificate, and the borrower will bring the loan issued by the bank. Just provide the original settlement certificate, original copy of the original policy and invoice, call the relevant insurance company and make an appointment to cancel the policy. When a borrower applies for a loan, the bank will register the mortgage. After the customer has settled the loan, he must not forget to release the mortgage. The borrower must bring the real estate certificate, settlement certificate and other mortgage rights certificates in the bank to the construction committee of each district to handle the mortgage release.

In this way, your property can be said to be completely your own property.

That’s it for the introduction of whether the loan needs to be paid off in one lump sum.