How to operate the early repayment of housing loan through China Merchants Bank Mobile Banking

China Merchants Bank mortgage early repayment first requires users to make an appointment application with the bank in advance; users can enter "My Loan - Early Repayment" through mobile banking to make an appointment application for mortgage early repayment or Directly contact China Merchants Bank to make an appointment for early repayment of the mortgage; then the user waits for the approval of the bank system. After the approval is passed, a text message will be sent to the user to notify the user of the early repayment business; at that time, the user only needs to log in to the mobile banking and deposit sufficient amount into the mortgage repayment account. amount, the system will automatically deduct the amount to complete the early repayment.

It should be reminded that early repayment of China Merchants Bank mortgage loans must be made in advance before it can be operated. In addition, if the mortgage repayment is less than one year, you need to pay a liquidated penalty for early repayment; if the mortgage repayment has been more than one year, there is no penalty for early repayment.

Early repayment means that the borrower applies to the bank for early repayment of his/her loan part, and ensures that the loan in the previous month has not been overdue and that the loan of the current month is repaid; the loan part is repaid in one go according to the date specified by the bank. or partially paid off.

Early repayment of a loan is generally divided into two methods: partial repayment of the loan in advance and full repayment of the loan in advance.

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

The first type is full early repayment, that is, the customer pays off the entire remaining loan at once. (There is no need to repay interest, but the interest paid will not be refunded)

The second type is partial early repayment, and the remaining monthly repayment amount of the loan remains unchanged and the repayment period is shortened. (Save more interest)

The third type is partial early repayment. The remaining loan will reduce the monthly repayment amount and keep the repayment period unchanged. (Reduces the monthly payment burden, but the degree of savings is lower than the second type)

The fourth type, partial early repayment, will reduce the monthly repayment amount of the remaining loan and shorten the repayment period. (Save more interest)

The fifth method is to keep the total principal of the remaining loan unchanged and only shorten the repayment period. (The monthly payment increases and part of the interest is reduced, but it is relatively uneconomical)

The two most commonly used repayment methods for buying a house with a loan are the equal principal and interest repayment method and the equal principal repayment method.

The equal principal and interest repayment method adds the total principal and interest of the mortgage loan, and then distributes it evenly to each month of the repayment period. The monthly repayment amount is fixed. However, the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month. This method is currently the most common and is also the method recommended by most banks for a long time.

In the so-called equal principal repayment, the lender will allocate the principal to each month, and at the same time pay off the interest between the previous transaction day and this repayment date. Compared with equal principal and interest, this repayment method has a lower total interest expense, but more principal and interest are paid in the early stage, and the repayment burden decreases month by month. Although this method of repayment requires greater financial pressure in the early stage, it can reduce future pressure. Its characteristic is that as time goes by, the repayments will be smaller and easier in the future.