At present, some commercial personal housing loans such as personal housing provident fund loans and China Construction Bank have launched services that allow borrowers to change their repayment plans and repay part or all of the loan in advance.

However, due to the early repayment of the loan, especially the early repayment of part of the loan, it is necessary to re-correct and calculate the loan period, loan balance and other contents agreed by the three parties in the original loan contract, which has certain operational complexity. Borrowers need to understand and master the following requirements and regulations: ?

1. The borrower must repay the loan principal and interest on a normal monthly basis for 6 months before it can propose to repay part of the loan or all of the loan in advance for the first time; ?

2. In order to strictly manage loans, lending institutions have set a minimum limit for early repayment of part of the loan, which generally requires an integer of more than 10,000 yuan, in units of 10,000. ?

3. Borrowers generally need to inform the lending institution 15 days in advance to repay the loan in advance, and must present the original loan contract, bank loan repayment savings card, monthly loan principal and interest statement, personal ID card, etc. Submit a written application to the lending institution (provident fund loans apply to the housing fund management department, and bank commercial housing loans apply to the lending bank), and must be reviewed and approved;

4. The original monthly loan principal and interest repayment still needs to be repaid that month, and the loan amount that needs to be repaid in advance is deposited into the bank savings card.

Whether it is to repay part of the loan in advance or to repay the entire loan in advance, the borrower must go to the bank to apply for an early loan repayment transfer within the time specified by the lending institution.

It is also worth mentioning that if you repay the entire loan in advance, the insurance company can refund the premium during the advance period. After the borrower repays the entire loan in advance, the lending institution will simultaneously return to the borrower the original personal housing loan insurance policy that has been kept by the lending institution.

Since the borrower had paid all the insurance premiums during the loan period in one lump sum when applying for the loan, the original personal housing loan insurance contract had been terminated early. According to relevant regulations, borrowers can bring the original insurance policy and proof of early repayment of the loan to the insurance company to refund the premium in advance on a monthly basis. ?

If you pay off the loan in advance and refund the insurance premium, it depends on whether the originally purchased house is an existing house or an off-plan house, and the actual insurance period of the off-plan house (the insurance period for an off-plan house of more than half a year is generally the borrowing period minus 1 year calculation), the discount interest rate and quick calculation coefficient of the original one-time premium payment, the calculation formula is: the insurance premium returned when the loan is paid off in advance = the present value of the paid insurance premium when it is returned in advance - the insurance premium occupied before the early return is in advance Present value at return.

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How to calculate the interest on early mortgage repayment

Use the early mortgage calculator to calculate

1. Early repayment refers to the borrower Submit an application for early repayment of your loan to the bank, and ensure that it has not been overdue in previous months and that you will repay the current month's loan; repay the loan in full or in part according to the date specified by the bank. Prepayment of a loan is generally divided into two methods: partial repayment of the loan in advance and full repayment of the loan in advance. Here we need to use the "early repayment calculator". First, use 360 ??to search for "early repayment calculator latest 2017", and then click on the first website that appears to enter (as shown below):

2. After entering the main page of this website, you will see the page of the early repayment calculator, which is very detailed (as shown below):

3. Let’s first give an example of repaying all the loans in advance: For example, I paid off the loan in full in 2017 In May, I took out a provident fund loan of 230,000 yuan, which is expected to be repaid in advance by November 2020.

Then we fill it in according to the above instructions. The repayment method is filled in according to your own loan method. The loan interest rate can be filled in according to the central bank’s benchmark repayment rate. The repayment method is generally equal principal and interest. This is based on your Just fill in the repayment method, and the date is from your first repayment date to your early repayment date. Select "one-time early repayment" in the early repayment method and click Calculate (as shown below):

4. At this time, you will see the calculation results, detailed data before early repayment and early repayment. The detailed data after payment can be compared to see how much interest has been saved. Of course, the data is too large and not detailed enough. You can also click to enter the "detailed report" (as shown below):

5. Enter After the "Detailed Statement" page, the loan amount is 230,000.00 yuan, the loan interest rate is 3.25%, the loan term is 120 months, and the principal and interest repayment method is equal.

Then the monthly repayment amount of equal principal and interest, the first monthly repayment amount of equal principal amount, the monthly decreasing amount, and the total interest of the loan will appear in front of you in detail one by one.

You can also fill in the partial repayment of the loan in advance according to the instructions above. Click Calculate and a detailed report will be automatically generated for your reference (as shown below):

Things to note when repaying the loan in advance

1. Don’t forget to surrender the insurance: After the borrower repays the entire loan in advance, the original personal housing loan insurance contract will also be terminated early. According to relevant regulations, borrowers can bring the original insurance policy and proof of early repayment of the loan to the insurance company to refund the premium paid in advance on a monthly basis.

So after repaying all the loans in advance, don’t forget to get your own money back from the insurance company and the tax department.

2. Don’t forget to get a tax refund: Also, don’t forget to go to the tax department to handle the tax refund procedures. When you purchase a commercial house, all family members who can receive tax refunds should be written into the house purchase contract as real estate rights holders. After signing the contract and paying the house price, you should apply for the "house buyer's paid personal income tax base deduction" and obtain your personal income tax. "General Tax Payment Form".

After repaying the entire loan in advance, you can obtain the real estate certificate. You should go to the tax department to handle tax refund procedures within 6 months after completing the real estate title certificate.

3. Do not repay in advance within the first year of the loan: It should be noted that do not repay in advance within the first year of the loan. According to the relevant provisions of provident fund loans, partial early repayment should be made after one year of loan repayment, and the repayment amount should exceed the six-month repayment amount.

Another point is that the loan contract stipulates that those who repay early should not be overdue. If there is overdue repayment, the debt should be repaid first and then apply for early repayment.

The algorithms and regulations of major banks on early repayment of mortgage loans

First, China Merchants Bank: If China Merchants Bank wants to repay the mortgage in advance within one year, it will charge at least an amount relative to the actual amount. The repayment amount will be 3 months' interest, but after one year, it will only be 1 month.

Second, China Construction Bank: If China Construction Bank wants to repay the loan in advance within one year, it will charge 3% of the advance repayment amount. The fee is 2% for one to two years, and 1% for two to three years.

Third, Agricultural Bank of China: If an Agricultural Bank of China loan is repaid in advance within one year, it will be charged at the principal * monthly interest rate. After one year of the loan, no penalty will be charged.

Fourth, Industrial and Commercial Bank of China: If a loan is repaid in advance within one year, ICBC will charge 5% of the prepayment amount. If the loan is repaid in advance after one year, it will be the same as Agricultural Bank of China. Charge any liquidated damages.

Fifth, Bank of China: If a Bank of China loan is repaid in advance within one year, it will charge a penalty of no more than six months' interest. If the loan is repaid in advance after one year, it is the same as Agricultural Bank of China. No liquidated damages will be charged.

Sixth, Bank of Communications: Bank of Communications has regulations on the amount of early repayment, which is at least six times the monthly repayment amount. Some early repayers can repay for free once a year.

Seventh, Guangfa Bank: If a Guangfa Bank loan is repaid in advance within one year, two months' interest will be charged as liquidated damages. If the loan is repaid in advance after one year, like Agricultural Bank of China, no penalty will be charged.

Eighth, Everbright Bank: If a loan from Everbright Bank is repaid in advance within one year, it will need to charge 3% to 6% interest as liquidated damages. As long as it is full one year, it will be the same as Agricultural Bank of China. No need Subject to liquidated damages.

Ninth, Shanghai Pudong Development Bank: If a Shanghai Pudong Development Bank loan is repaid in advance within one year, there are two types of liquidated damages, one is 1.5% interest, the other is 3% interest, and the loan After one year, no liquidated damages will be charged.

Tenth, Shenzhen Development Bank: Shenzhen Development Bank has stricter requirements than ordinary banks. The general period is two years. As for the default amount within two years, it depends on the contract.