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Prepayment considerations for mortgages

Time: 2016-11-22         Source: Rong 360 finishing         Author: 360 Financial consolidation

Most banks require at least one year before they can applyRepaying loans in advanceHowever, there are also some banks that can apply for early repayment at any time. In state-owned banks, BOC and CCB need to repay their loans for one year before they can apply for early repayment. ICBC needs half a year to repay loans in advance. In addition, banks such as China Merchants Bank and Bank of Communications will need to apply for early repayment in a year.HSBC BankIt means that you can apply for repayment at any time. The average mortgage period is more than 10 years. In this cycle, it is inevitable that the central bank will adjust interest rates, and the time for each bank to adjust interest rates is also inconsistent. Most Chinese banks such as ICBC, ABC, and China Construction Bank generally adjust to the new repayment interest according to the recent central bank benchmark interest rate on January 1. Foreign banks generally choose to adjust in the current month or quarter. Citibank was executed at the new interest rate at the beginning of the next quarter, and HSBC began to execute at the new interest rate on the same day. For the mortgage family, which kind of interest rate adjustment method is more cost-effective? Experts said that if it is in the interest rate cut channel, obviously the faster the adjustment is more cost-effective; if the interest rate cycle is the week, the later the adjustment is more cost-effective. The public is choosingPrepaymentAt the time, a fee is generally paid, also known as "penalty interest" or "liquidated damages", which is usually stated in the contract. In the state-owned large-scale work, agriculture, China, construction, and trade, the Bank of Communications does not charge fees for advance repayment, while ICBC needs to charge 2~3 months of interest as a handling fee, while other banks need to charge 1 month interest. Among them, the Agricultural Bank of China will charge one month's interest in the loan within three years as a handling fee, and will not charge the fee after three years. Bankers reminded that whether the loan is repaid within the contract period or is repaid in advance, the public should not forget to apply for the cancellation of mortgage registration after the loan is repaid. According to the different conditions in the hands of the title certificate, the procedures for obtaining the title certificate after the loan is completed are also divided into several types. One of the simplest cases is that the original of the title certificate has been mortgaged in the bank. If this is the case, the buyer will still complete the loan, or will receive a repayment certificate after returning the loan in advance, and the bank will return the original certificate of the title certificate and the original contract of sale to the purchaser. In this way, the purchaser can get back the property certificate that belongs to him completely, and has nothing to do with the bank. However, because the operation rules of different branches of different banks are not uniform, some branches only need to do a mortgage registration, and buyers can own the real estate license with the mortgage registration mark. That is, before the loan is paid off, the real estate license will be obtained in advance, and the current status of the house will be indicated in other items on the real estate license. If this is the case, after the buyer has completed the loan, in addition to repeating the above steps, a procedure for revoking the mortgage registration is also required. After the purchaser and the bank have completed the settlement procedures, they will go to the Housing Authority to cancel the mortgage registration, that is, they will be stamped out in the column of the real estate certificate.

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