Construction Bank: 3% of the prepayment amount will be charged for prepayment within one year. If the loan is repaid one to two years in advance, 2% of the prepayment amount will be charged. If the loan is repaid two to three years in advance, one percent of the prepayment amount will be charged.

Agricultural Bank: If the prepayment is less than one year, it will be charged according to the principal multiplied by the monthly interest rate, that is, the loan interest rate divided by 12 months minus the repayment months. Repay the loan in advance after one year, as long as there is no record of prepayment before, there will be no liquidated damages. If it has been paid in advance, it will be applied again one year later, and no penalty will be charged.

ICBC: If the prepayment is made within one year, a penalty of 5% of the prepayment amount will be charged. If the loan is repaid in advance after one year, no penalty will be charged.

Bank of China: If the prepayment is less than one year, the maximum penalty interest will be six months (calculated according to the loan interest rate on the prepayment date). If the loan is repaid in advance after one year, no penalty will be charged.

Bank of Communications: Some prepayment requirements are not less than 6 times the monthly repayment amount, and the maximum repayment amount is not more than 35% of the monthly repayment amount. Some requirements for early repayment can be paid free of charge once a year. All prepayments are subject to penalty, which is 1% of the current repayment amount. However, the specific repayment amount should be executed according to the contract.

Note: If the borrower needs to repay the loan in advance, he usually needs to apply by phone or in writing and bring his ID card and loan contract to the bank for approval. If the borrower has settled all the final payment, the bank will save enough money to repay the loan in advance after calculating the remaining loan amount.

Repaying part or all of individual housing loans in advance means that the borrower repays a certain amount or all of the loans in advance on the basis of guaranteeing to repay the principal and interest of individual housing contributions on a monthly basis, so as to achieve the purpose of "shortening the repayment period and reducing interest expenses". The specific method of "partial prepayment" is that the first bank must ensure that the monthly repayment amount after prepayment exceeds the original repayment amount before applying for partial prepayment.

Under what circumstances is it most cost-effective to repay the mortgage in advance?

Mortgage prepayment can be divided into full prepayment and partial prepayment. Different repayment methods have different interest calculation methods. Details are as follows:

1. Advance payment.

If the mortgage user wants to pay off all the remaining outstanding debts at one time, the interest of prepayment will be calculated until the day when the user pays off the debts, which means that the user will pay interest as long as he borrows. However, it is worth noting that if the repayment time is less than one year, many banks will charge the borrower a certain penalty, which is subject to the bank's regulations.

2. Partial repayment in advance.

Partial prepayment means that mortgage users repay part of the principal first, but not all the debts. For part of the interest paid in advance, it will be calculated to the repayment date, and the remaining unpaid principal will still pay interest according to the contract.

3. Equal principal and interest are still average capital.

If you repay the loan with equal principal and interest, the monthly repayment amount is fixed, but the difference is that the interest paid in the early stage is high and the principal is low; The repayment method of average capital is to pay a fixed principal every month and calculate interest according to the remaining principal. If the principal and interest are equal, most of the interest has been paid in the early stage, so it is not cost-effective to repay in advance.

There are two ways to choose partial prepayment: keeping the monthly repayment amount unchanged and shortening the corresponding repayment period; Or the repayment period remains unchanged, and the monthly repayment amount is reduced.

From the interest point of view, it is more cost-effective for mortgage users to choose the same repayment amount and shorten the repayment period. However, for mortgage users with high repayment pressure, choosing the same repayment period and reducing the monthly repayment amount can alleviate the current repayment pressure.

The main reason is

Related Q&A: Related Q&A: Why do banks charge liquidated damages for repaying bank loans in advance? Thank you. Hi, Mr. Fang Xin's invitation!

If the buyer applies for prepayment, the bank will charge liquidated damages. Many people don't understand why they have to pay liquidated damages.

In fact, the reason is simple:

Banks try their best to prevent borrowers from repaying loans in advance during this period in order to collect as much interest as possible. Once you want to repay in advance, so that the bank can't make enough money, you will naturally want to earn it back in another way, that is, liquidated damages.

1. What is the penalty?

In order to limit prepayment, some lending institutions put forward a concept called substantial prepayment. Different lending institutions have different standards for substantive behavior, but generally it means that the prepayment amount of the borrower exceeds 20% of the principal balance within 12 months. Under this concept, some banks require borrowers to repay in advance to pay liquidated damages.

At present, there are three ways for commercial banks to deal with prepayment.

1. No matter when repayment is made, no penalty will be charged.

2. Repayment in advance is not allowed within a certain period (3 months, 6 months, 12 months), and no penalty will be charged thereafter.

3. Some banks stipulate that there is a penalty for prepayment. Some are calculated as a percentage of the principal, and some add interest for several months.

Second, the fine collection method:

1, calculated according to the percentage of outstanding balance at the time of prepayment (generally 2% to 5%).

2. The penalty is several months' interest.

For example, the Bank of China stipulates that:

(1), penalty interest for less than one year, three months; You need to apply for redemption of the building one month in advance.

(2) if the mortgage is over one year but less than two years, it will be fined for two months;

(3) A penalty of one month for mortgage payment of two years but less than three years;

(4) The housing mortgage contract of more than three years shall prevail.

It should be noted that the biggest punishment is bound by contract or law.

Three, the loan contract loan penalty clause

The loan contract signed by the borrower and the bank is a commercial contract, and the bank charges interest at the interest rate agreed in the contract. If the borrower repays the loan in advance, it constitutes a breach of the loan contract. Therefore, the collection of liquidated damages is a business strategy problem adopted by banks in the course of operation. If both parties clearly stipulate the liquidated damages in the loan contract, once the borrower repays in advance, the bank can collect the liquidated damages according to the contract; However, if there is no liquidated damages in the loan contract, the lender may refuse to pay.

Therefore, when signing a contract, be careful.

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