For the small partners who have already bought a house, it is the first thing to make money quickly and pay off the house loan in advance. After all, it can reduce our economic pressure every month. So can the mortgage be paid off in advance? What are the precautions for paying off the mortgage in advance?
Prepayment is divided into two kinds, one is to pay off in full, and the other is to pay off in part. Most people will choose to pay off part of it in advance. Partial repayment can also be divided into two categories: one is to shorten the term of the loan and keep the monthly repayment unchanged; the other is to reduce the monthly payment but keep the term unchanged. In partial repayment, the former can save a lot of interest.
There are two ways for banks to collect liquidated damages: first, according to 2% - 5% of the remaining mortgage, and second, to collect several months' interest. That is to say, if your mortgage has not been paid for a month, you will have to pay three months' interest penalty. There is no need to pay three months' interest penalty when the mortgage has been paid for two years or more.
If you want to repay, you need to make an appointment, and the time of each bank and each sub branch is different, which depends on the bank, because if there are fewer people to repay, it will be faster, and if there are more people to make an appointment for repayment, it will be slower. If it is faster, you can make an appointment for repayment the next day, and if it is slower, it may take several months, so you should make an appointment first.
It is worth mentioning that different banks have different regulations on prepayment, and there may be differences in liquidated damages, repayment amount and repayment time. Before deciding to repay the mortgage in advance, it is suggested that partners go to the bank to learn about the relevant situation. After you know the situation, you can make a reasonable decision after weighing.