Mortgage repayment is automatically deducted by the bank. Because when people apply for mortgages at banks, they usually bind a bank card and sign an automatic deduction agreement with the bank, allowing the bank to automatically deduct money from the bound bank card every month for repayment. So when everyone pays off a mortgage, they usually just pay the money back into the card before the repayment date. On the repayment date, the bank system will automatically deduct the money from the card.

However, everyone also needs to be aware that if there is insufficient balance in the card, the bank will fail to deduct the money automatically on the repayment day, resulting in failure to repay the card. Everyone needs to deposit money into the card as soon as possible, and after depositing the money, it is best to notify the bank so that the bank can deduct the money in time.

After all, some banks may no longer perform automatic deductions after the repayment date, or there may be omissions, so in order to avoid the situation where the money is returned to the bank without being deducted, resulting in aggravation of overdue circumstances. If it happens, it is best to contact the bank after overdue repayment.

Can a mortgage be paid off in advance?

1. Generally speaking, a mortgage can be paid off in advance. We can divide it into two types: full repayment in advance and partial repayment in advance. Partial early repayment can be divided into partial early repayment, keeping the monthly payment unchanged and shortening the loan period; partial early repayment, reducing the monthly payment and shortening the repayment period; or partial early repayment, increasing the monthly payment and shortening the repayment period. the term.

2. If you choose to repay your mortgage loan early, you must also comply with the relevant regulations of the bank. For example, according to the relevant policies and regulations of provident fund loans, if we want to partially repay the loan in advance, we need to wait for the loan to be full for one year before we can apply. Different banks have different rules on early repayment time. For example, Bank of China, China Construction Bank, Bank of Communications, etc. can only apply for early repayment after one year. ICBC needs half a year to repay in advance, and Agricultural Bank of China needs 3 years to repay in advance.

3. Some people choose to repay in advance to save interest. However, we chose the repayment method of equal principal and interest. We have already reached the middle of the repayment period, so repaying it early does not make much sense, because the equal principal and interest will mostly be the principal in the later period. If the mortgage interest rate drops, it is not cost-effective for us to choose to repay the loan early. If house prices rise rapidly, we can choose to repay early.

4. Early repayment usually requires the payment of a certain amount of liquidated damages, because the bank will lose a certain amount of interest on early repayment. Different types of companies charge different penalties for early repayment. For example, after one year of a China Merchants Bank loan, if you apply for early repayment, you will be charged no less than one month's interest as liquidated damages. After one year of a Bank of China loan, there is no need to charge liquidated damages when applying for early repayment.