What is the process of prepayment and how does it work?

For many loan buyers, the term prepayment is not unfamiliar. Many people will choose to repay the loan early in the later stage of the loan because they have sufficient funds. The specific process of prepayment is: making an appointment, submitting materials, signing the application, etc.

1.Appointments: For prepayment, banks generally require appointments.

There are two main ways to make an appointment: make an appointment or make an appointment directly at the counter. Appointments are usually made for the next day's repayment one day before they are ready to be repaid.

It should be noted that the repayment should be an integer multiple of 10,000, and early repayment is not a fraction.

Loan contract, ID card, repayment card. There are also two options to consider: shorten the loan tenure or lower the monthly repayment amount.

You can make a choice according to your actual situation.

3.Sign the prepayment application form: After arriving at the bank, you should go to the designated counter to collect the "Prepayment Application Form", fill it out and deposit the amount to be repaid in the repayment card. Once the repayment is successful, the principal amount of your loan will be reduced from the amount of the prepayment.

4.Home buyers who have paid off their loan in full early should also note that:

1) Surrender the insurance to the insurance company with the "Housing Payment Settlement Certificate" issued by the bank.

2) Go to the local real estate trading hall to go through the "cancellation of mortgage registration", and don't forget that your house still belongs to the bank until the mortgage registration is revoked.

The prepayment process is actually not complicated, and there are some small points that we need to pay attention to when operating. Not everyone is suitable for prepayment, but we should still have some understanding of prepayment in case we need to be caught off guard.

Hello! The early repayment of personal housing mortgage loans of ABC is handled as follows: the borrower shall submit a written application to the lending bank at least 30 days in advance and obtain the consent of the lending bank to apply for early repayment of the housing loan.

For early repayment of personal housing loans, the materials to be brought are the borrower's identity document, personal housing purchase guarantee loan contract, and the original housing loan repayment card (discount), and the application should be submitted to the original loan agency in advance as agreed in the contract. Please consult your local lender for details. The standard of liquidated damages for early repayment is subject to the loan contract signed between the customer and our bank, please check the provisions of the loan contract or contact the loan handling branch for verification.

What documents do I need to pay my mortgage early?

Legal analysis: the specific process of prepayment: make an appointment in advance, and it takes 2-7 working days for the bank to handle this business.

Second, the loan documents should be ready. If the borrower needs to repay the loan in advance, he or she should generally bring his ID card and loan contract to the bank for approval after ** or written application. 3.

How to calculate the interest rate after the rate cut: The new interest rate will be calculated at the beginning of the new year. 4.Surrender.

Legal basis: Article 563 of the Civil Code of the People's Republic of China stipulates that this contract may be terminated under any of the following circumstances:

1) The purpose of the contract cannot be realized due to force majeure;

2) Before the expiration of the performance period, one party clearly states or shows by its own conduct that it will not perform the principal debt;

3) One party delays the performance of the principal debt and fails to perform it within a reasonable period of time after being reminded;

4) One of the parties delays the performance of debts or commits other breach of contract, making it impossible to achieve the purpose of the contract; Wisdom.

5) Other circumstances provided for by law.

In the case of an indefinite contract with the content of continued performance of debts, the parties may terminate the contract at any time, provided that they notify the other party before a reasonable period of time.

Taking CCB as an example, the process of early repayment of housing loans by CCB:

1. Make an appointment with the bank account manager in advance;

2. Bring your ID card to the bank branch at the appointed time to settle the loan;

3. CCB needs to pay liquidated damages for early repayment (different banks have different standards for prepayment liquidated damages, and different branches of the same bank are also different for prepayment liquidated damages), as follows:

The minimum prepayment of partial prepayment shall not be less than 6 times of the monthly repayment amount, and the maximum shall not exceed 35% of the monthly repayment amount, and some prepayment customers can repay the loan for free once a year.

All early repayers are required to pay liquidated damages, and the loan will be repaid in advance for one to two years, and 2% of the prepayment amount will be charged; The loan is repaid in advance from two to three years, and 1% of the prepayment amount is charged. However, the specific repayment amount needs to be implemented in accordance with the contract.

4. Pay off the remaining loan first, and the bank will type out the settlement certificate on the spot;

5. One week after the cancellation of the bank's mortgage procedures, the main lender will go to CCB to get the materials; In addition, you can also fill in the pickup authorization form at the bank, and you can let someone else pick up the mail on your behalf;

6. After paying off the loan, the main lender (or the sub-lender with the relationship certificate) needs to go to the provident fund management center to go through the procedures for revoking the mortgage of the provident fund loan, and get a certificate with a red seal.

7. Finally, together with the certificates of revocation of mortgage registration on both sides, go to the real estate transaction orange Huaihong Center to revoke the real estate mortgage registration.

Prepayment is an application for "early repayment", which means that the borrower applies to the bank to repay part of the loan in advance, and at the same time guarantees to the bank that the loan of the previous month is not overdue and the loan of the current month is repaid on time, and then the remaining loan is repaid in full according to the date specified by the bank, or part of the loan is repaid.

1. First of all, you must consult the lending bank whether you can repay the loan in advance; 2. If the loan can be repaid in advance, the lender will go to the bank with his ID card (temporary residence permit for foreign buyers), loan contract and other documents, fill in the application information, and submit the application for early repayment; 3. Deposit sufficient repayment amount into the bank's repayment account according to the bank's requirements; 4. Go to the bank to sign the relevant documents; Take back the certificate of other rights, the proof of full repayment of the loan, the original insurance contract of the mortgage loan, the relevant documents of the real estate certificate and some documents; 5. Go to the real estate management department (such as the district and county housing management bureau) to go through the procedures for releasing the mortgage, and the real estate department will take back the certificate of other rights, and stamp the real estate certificate to indicate that the mortgage has been released. 6. Go to the insurance company to go through the procedures for refunding part of the insurance money, and provide the original and copy of the mortgage loan insurance policy contract, the invoice of the insurance policy, the bank has paid off the loan, ID card and other documents, and fill in the form to receive the remaining balance of the insurance money after settlement. Article 7 of the General Principles of Loans: Self-operated loans, entrusted loans and specific loans:

Self-operated loan refers to a loan issued by the lender on its own initiative with funds raised in a lawful manner, the risk of which is borne by the lender and the principal and interest are recovered by the lender. Entrusted loan refers to the loan provided by the principal such as ** department, enterprise, institution and individual, and the lender (i.e. the trustee) disburses, supervises the use and assists in recovering the loan according to the loan object, purpose, amount, term, interest rate, etc. determined by the client. The lender (trustee) only charges a handling fee and does not bear the loan risk.

Specific loans refer to loans issued by wholly state-owned commercial banks after they have been approved and have taken corresponding remedial measures for the losses that may be caused by the loans.

Legal analysis: prepayment process: 1. Check the requirements for prepayment in the loan contract and pay attention to whether you need to pay liquidated damages; 2. Prepare the materials required for prepayment and submit an application for prepayment to the relevant departments; 3. Submit the "Early Repayment Application Form" and deposit the prepaid amount at the counter.

Legal basis: Article 17 of the General Principles of Loans.

The borrower shall be an enterprise (institution) legal person, other economic organization, individual industrial and commercial household, or a natural person with full capacity for civil conduct with the nationality of the People's Republic of China approved and registered by the administrative authority for industry and commerce (or the competent authority).

When applying for a loan, the borrower shall meet the basic conditions such as having a market for the product, efficient production and operation, not crowding out and misappropriating credit funds, and abiding by credit, and shall meet the following requirements:

1. Have the ability to repay the principal and interest on time, and the original loan interest payable and the loan due have been repaid; If it has not been repaid, a repayment plan approved by the lender has been made.

2. Except for natural persons and legal persons who do not need to be approved and registered by the industrial and commercial department, they shall go through the annual inspection procedures of the industrial and commercial department.

3. A basic account or a general deposit account has been opened.

2.Applicants are required to make an appointment with Japan Post Bank in advance.

3.Applicants are required to bring the above relevant materials to the designated Postal Savings Bank counter at the appointed time and fill in the application form for early repayment.

4.The staff of the Postal Savings Bank will review the materials provided by the applicant.

5.After the review is passed, the applicant will apply for early repayment.

Extended information: Prepayment means that the borrower applies for early repayment of the loan part of the loan to the bank, and guarantees that the loan is not overdue in the previous month and the loan is repaid in the current month; The loan will be repaid in full or in part according to the date specified by the bank.

Prepayment is generally divided into two ways: partial repayment and full repayment in advance.

Depending on the repayment method, the borrower can choose to reduce the mortgage for the term or the amount of the mortgage. It is understood that at present, most banks can provide five ways to repay loans in advance for customers to choose from.

The first is full prepayment, which means that the customer pays off the remaining entire loan in one go. (No interest is required, but the interest paid is not refunded).

The second type is partial early repayment, and the remaining loan will keep the monthly repayment amount unchanged, shortening the repayment period. (Save more interest).

The third option, partial early repayment, will reduce the monthly repayment amount for the remaining loan, leaving the repayment period unchanged. (Reduces the burden of monthly payments, but the degree of savings is lower than that of the second option).

Fourth, partial early repayment, the remaining loan will be repaid less than the amount required in the monthly repayment draft, and the repayment period will be shortened. (Save more interest).

Fifth, the remaining loan keeps the total principal unchanged and only shortens the repayment period. (The monthly payment increases, and some interest is reduced, but it is relatively uneconomical).

Financial experts suggest that early repayment should minimize the principal, shorten the loan term, and make the interest on the expenses less.

After the loan key is confirmed, if the loan is partially repaid in advance, it will recalculate the loan balance and final repayment period after the early repayment of part of the loan according to the interest-bearing repayment method determined in the original loan contract based on the calculation principle of "interest first and principal later, equal monthly reduction, and shortening the repayment period", reprint the "monthly capital repayment interest table", and re-sign the "loan change contract" with the borrower. The interest on the loan decreases as the principal decreases. So, how can you pay less interest?

One option is to choose the equal principal repayment method before taking out a loan. Since the "equal principal repayment method" has more principal repaid in the early stage, when you repay the loan early, the loss of interest is smaller. However, the "equal principal and interest repayment method" has a lot of interest and a small principal due to the early repayment, so you will suffer some losses when you repay the loan early.

Therefore, it is important to choose a reasonable repayment method.

1. The borrower should first check the requirements for early repayment in the loan contract and pay attention to whether the early repayment needs to pay liquidated damages;

2. Call the lending bank to consult the application time for early repayment, required information and other matters;

3. Apply for early repayment to the relevant departments according to the requirements of the lending bank;

4. The borrower should bring the relevant materials to the loan bank to go through the early repayment procedures;

5. Deposit the early repayment amount into the repayment account and wait for the bank to deduct it, or directly bring cash to the loan bank to repay it.

What to pay attention to when repaying your loan early.

1. Prepare the documents required for early repayment and make an appointment with the bank.

The bank generally requires the lender to submit a written or ** application 15 working days in advance, and the bank will approve the loan prepayment application after receiving the lender's housing loan prepayment application, which generally takes about a month. Secondly, the borrower needs to bring his ID card and loan contract to the bank for approval procedures, and the specific materials to be prepared need to consult the bank first.

2. Find out whether the bank has any provisions on default penalty interest for early repayment.

At present, for most small and medium-sized joint-stock banks, there are few additional penalty interest for home buyers who want to repay their loans in advance, and they are required to pay liquidated damages. However, some large state-owned banks are required to pay liquidated damages to varying degrees. Some banks will state in the loan contract that a penalty may be charged for early repayment.

Some banks charge 1 3 months of interest on the actual repayment.

In addition, some banks have a maturity requirement for prepayment, with most terms being 1 year. If the buyer asks for early repayment of the loan after the loan term is less than one year, he or she may be required to pay a certain amount of liquidated damages as agreed in the contract. Therefore, prepayment borrowers need to check with the lending bank if there will be a default due to prepayment.

3. Don't forget to surrender the loan if you repay the loan early.

After the lender settles all the balance in advance, the bank will issue a settlement certificate, at which time the borrower needs to bring the original loan settlement certificate issued by the bank, the original copy of the original insurance policy and the invoice, and call the relevant insurance company to make an appointment to surrender the policy.

I would like to remind all borrowers that some insurance companies may change their work locations, and it is best to make an appointment before surrendering the policy to avoid delays. However, it should be noted that if the buyer does not settle the remaining loan at one time, he cannot request to surrender the policy.

4. Don't forget to unmortgage.

Whether it is to repay the loan within the contract period or repay the loan in advance, the borrower must remember to bring the real estate certificate, settlement certificate and other rights certificate of the house to the housing and urban development committee office of each district to understand the mortgage after the loan repayment is completed.