When buying a house, people usually apply for a loan. Sometimes we have the opportunity to repay these loans in advance. So if you're considering early repayment of the mortgage, you might want to know what the modalities are and what matters need attention. Let's talk about it together。

There are several ways in which mortgages can be repaid in advance

First of all, let's look at the usual way housing loans are paid early. When you choose to pay off part of the mortgage in advance, you still have the outstanding loan. There are two possible options for this part of the loan. One is to reduce the repayment period of the loan, which remains the same on a monthly basis, and the other is to maintain the repayment period on the loan while the monthly repayment level is reduced。

If you can pay off all the remaining mortgages once, then the first way is to pay off the bank's principal. The repayment date is the date on which you pay the bank ' s principal. In fact, all you have to do is pay the interest earned on the day you borrowed it, which is the daily interest。

Another way is to pay back part of the bank's loan, that is, only part of the mortgage. Interest continues to be calculated at the original loan rate, and if there is a preference, the preference will continue。

While there are many advantages to early repayment, there are a number of matters that require attention. First, costs. Early reimbursement usually involves some fees, which is one way in which commercial banks profit. Second, if the loan is not yet due, the bank may also require you to pay the default. Second, there are many ways in which banks calculate interest, and if you are not familiar with these methods, you may make mistakes in the calculation of interest. Finally, the timing of early repayment of loans is also important. You need to opt for early repayment when market interest rates fall, which reduces subsequent interest expenditure. At the same time, early reimbursement should be avoided at the end of the reimbursement period in order to prevent additional costs resulting from the missed repayment time。