After applying for a twenty-year mortgage, if the customer has money, he can indeed make early repayment. Repaying part of the mortgage loan in advance can reduce a certain amount of interest, and then customers can choose to reduce the monthly payment and keep the repayment period unchanged, or shorten the repayment period and keep the monthly payment unchanged.

Of course, everyone needs to note that for some banks, early repayment of mortgage loans requires a phone call to make an appointment before going to the branch to handle the early repayment procedures; some can directly use online banking or mobile banking clients. Operation prepayment.

Also, some banks have certain requirements for the early repayment time of mortgage loans. They stipulate that the repayment must be made on time and in installments according to the repayment plan stipulated in the contract for the specified time before they can apply for early repayment. If the requirements are not met, If you repay the loan early, you may need to pay a certain amount of liquidated damages.

Some regulations are one year, and some are three years. The standards for collecting liquidated damages will also vary. Some charge 1% to 3% of the early repayment amount, while others directly charge several months more interest as liquidated damages.

Can a couple repay a mortgage in advance?

When a mortgage is repaid in advance, both spouses can repay it alone. It is not necessary for both spouses to be present. Of course, this needs to be done in person. When signing a loan contract, the lender must sign in the name of one of the husband and wife. Only one person can go.

If when signing a contract, both husband and wife serve as co-borrowers and sign in the names of both husband and wife, then both of them need to be present when the loan is repaid in advance.

When repaying a loan early, it is best to communicate with the lending institution in advance to see what materials you need to bring, whether you need to apply in advance, and whether there will be a handling fee for early repayment. If so, , and what standards to charge, etc., the lender must understand and prepare in advance.

In some cases, the advantage of repaying the loan early is not great, and you cannot save much interest. Take a mortgage, for example. Most of the repayments in front of the mortgage are interest and not much principal. If the mortgage repayment period exceeds one-third of the loan period, the advantage of repaying it in advance is not great.