So, what is the strategic time frame for early repayment? Because of the usually large amount of mortgages, many have opted for early repayment to reduce interest expenditure. Let us explore together the best timing for early repayment。

What's the best time for early repayment

First, let's look at the equivalent principal repayment method. This mode of repayment means that the borrower repays the principal on an average monthly basis and also pays interest on the remaining principal. Over time, your monthly principal will be reduced, so will the interest paid. So, if you pay in equal principal, then a quarter of the loan period is the best time for you to pay in advance。

Second, it is the equivalent principal repayment method. Equivalent principal means that the borrower repays the principal and interest on the loan in an equal amount per month. If you choose the equivalent principal method, then when the loan period reaches one third, it is the ideal point for you to pay in advance. If you exceed half of the loan period, the principal portion of the monthly repayment will increase, and early repayment will not necessarily bring the desired benefit。

Furthermore, it should be noted that the necessary point for early repayment is that the bank may have a default on the act. Whether or not to apply for a specific default, and the amount thereof, depends on the bank ' s regulations and the time point at which you choose to pay in advance. You can get this information directly by telephone with a customer service。

In most cases, banks require the customer to repay in advance for at least one year under the repayment plan established in the contract, or otherwise pay the default. Some banks charge a corresponding percentage of default money even if they can pay in advance。

In sum, the advance repayment of the mortgage is to be made in accordance with the manner and time of your choice, and it is necessary to know the bank ' s requirements for early repayment of the default。