Using the average capital repayment method, it is best to repay the 30-year mortgage loan in advance before the end of the ninth year and the first 10 year, because the repayment method in the average capital is to divide the total loan into equal parts first, and then repay the same amount of principal and interest generated by the remaining loans in that month every month. Therefore, with the continuous repayment of customers, the monthly payment will be less and less, and by the end of the ninth and tenth years, the proportion of interest in monthly payment will gradually be lower than the proportion of principal, so if you choose to repay in advance before this, you will be able to reduce more interest.

If the prepayment operation is started at the later stage of repayment, the principal will be repaid soon, and the interest will not be much, even if prepayment is not cost-effective.

Some banks may charge a certain amount of liquidated damages if they prepay when they just apply for a mortgage. After all, many banks stipulate that the repayment plan agreed in the contract must be repaid on time, otherwise a penalty will be charged. Some banks stipulate that it is one year, while others stipulate that it is five years. After that, you can repay in advance without paying more.

Will the prepayment interest rate be recalculated?

No, if the loan is repaid in advance, the loan interest rate will still be implemented according to the interest rate agreed in the loan contract, but the loan interest will indeed change. If the borrower chooses to repay all the loan procedures in advance, it needs to apply at least 7 days before the repayment date. After verifying the relevant materials, the loan bank will pay off in advance without calculating interest.

If ICBC wants to repay in advance, it must apply one month in advance and repay in advance. If the mortgage is less than three years, it will be fined three months' interest, and if it is more than three years, there will be no penalty interest. In addition, if ICBC chooses to prepay in part, the prepayment amount must be more than 6 times of the monthly payment.

According to the relevant regulations of China Construction Bank, if the mortgage loan is repaid in advance for less than one year, a penalty interest will be imposed according to the three-month interest of the prepayment amount; Mortgage for more than one year and less than two years, plus two months of interest; If the mortgage lasts more than two years but less than three years, you will be fined one month's interest. If the mortgage loan is over three years, there is no penalty interest for prepayment.

If the loan of Agricultural Bank of China is less than one year in advance, penalty interest will be imposed according to the prepayment amount of 6 months; Mortgage for more than one year and less than three years, plus three months of interest; If the mortgage lasts more than three years, you will be fined one month's interest.

If the mortgage loan of China Bank is repaid in advance for less than one year, the penalty interest will be paid at the interest rate of three months on the prepayment amount, and if the mortgage loan is repaid for more than one year but less than two years, the penalty interest will be paid for two months; If the mortgage is over two years, the penalty interest will be one month for less than three years; There is no penalty interest for mortgage loans for more than three years, mainly based on the loan contract.