After a large repayment in advance, the monthly payment and interest will not necessarily decrease, depending on the specific situation, but whether to recalculate the monthly payment and interest according to the remaining loans.

According to the different repayment methods, the borrower can choose to reduce the term or amount. Most banks can provide five ways to repay loans in advance for customers to choose from:

First, all loans are repaid in advance, that is, customers pay off all remaining loans at one time. (There is no need to repay the interest, but it will not be refunded if it is paid)

Second, a part of the loan will be repaid in advance, and the monthly repayment amount of the remaining loan will remain unchanged, thus shortening the repayment cycle. (save more interest)

Third, repay some loans in advance, reduce the monthly repayment amount of the remaining loans, and keep the repayment period unchanged. (Reduce the monthly payment burden, but less than the second type)

Fourth, repay some loans in advance, reduce the monthly repayment amount of the remaining loans and shorten the repayment cycle. (save more interest)

Fifth, the remaining loans keep the total principal unchanged and only shorten the repayment period. (The monthly payment will increase and the interest will decrease, but it is relatively uneconomical.)

Extended data:

Precautions for advance payment

First of all, you must ask the requirements for repaying the loan in advance.

If the borrower wants to repay in advance, he must repay for more than half a year, or even individual banks require repayment for more than one year. Banks generally require borrowers to submit written or telephone applications 15 working days in advance. After the bank receives the borrower's application for early repayment, it needs to be examined and approved, so it usually takes about one month.

Second, prepayment documents need to be prepared.

If the borrower needs to repay the loan in advance, he should generally apply by phone or in writing and go through the examination and approval formalities at the bank with his ID card and loan contract. If it is a borrower who has settled all the balance, after the bank calculates the remaining loan amount, it is convenient for the borrower to save enough money to repay the loan in advance.

Third, don't forget to surrender and lift the mortgage when repaying the loan in advance.

After the lender settles all the final payment in advance, the bank will issue a settlement certificate. The borrower can call the relevant insurance company with the original loan settlement certificate, the original policy and the original invoice issued by the bank to make an appointment to surrender. When the borrower applies for a loan, the bank will register the mortgage.

Fourth, not everyone is the most suitable to repay the loan in advance.

Compared with the current CPI, the 30% interest rate of the loan customers who have signed the contract can be said to be very low. The capital utilization cost of these property buyers is very low, and it is not recommended to repay the loan in advance.

Baidu encyclopedia-repaying loans in advance

Is it interest or principal to pay a large sum of money for buying a house?

With the national benchmark interest rate unchanged:

Average capital: the total monthly payment decreases month by month, and the principal remains unchanged. At first, the repayment interest was more, and the repayment pressure was greater, but the interest was saved;

Matching principal and interest: the total monthly payment remains unchanged, which is convenient for memory. The principal part increases month by month, the interest part decreases month by month, and the repayment pressure is relatively small;

skill

Which repayment method is more appropriate, it is recommended to choose according to your own situation.

Is the mortgage still a large sum of money the principal?

Large repayment is a kind of prepayment. Generally speaking, large repayment is also the payment of loan principal. After receiving a large repayment, the bank will recalculate the remaining principal to be repaid. If the original monthly payment is maintained, the repayment period will be shortened. After recalculating the monthly payment, the monthly payment amount will be reduced but the original repayment period will remain unchanged.

For large repayment, it is best to choose the repayment method of shortening the service life, because interest can only be received after shortening the service life. However, early repayment at any time can reduce the total loan interest, so large repayment can effectively save loan interest.

How many days is the credit card overdue?

Each bank's credit card has a certain grace period for repayment, during which the repayment will not be recorded in the credit report. Most bank credit card repayment grace period is 3 days, and the application does not need to take effect automatically. However, some banks have special provisions on the grace period for repayment, as follows:

1, Bank of China:

The grace period for repayment of the Platinum Credit Card of China Bank is 9 days, and the grace period for repayment of other credit cards of China Bank is 3 days.

2. Postal Bank:

The grace period for repayment by China Post Bank is 4 days.

3. Guangfa Bank and Citibank:

Both Guangfa Bank and Citibank need to apply for a special grace period for repayment, usually around 3 days.

4. Agricultural Bank:

The grace period for repayment of China Agricultural Bank is 2 days.

5. ICBC:

ICBC's Star Card and Struggle Card can have a grace period of three days, while ICBC's other credit cards have no grace period.

What are the consequences of overdue credit cards?

If the overdue period reaches a very serious state, it will constitute a malicious overdraft, which will be identified as the crime of credit card fraud. Sentencing standards will be implemented according to the amount of our malicious overdraft, including fixed-term imprisonment of less than five years or life imprisonment, less than five years and less than 10 year, and a fine of more than 20,000 yuan but less than 200,000 yuan, more than 50,000 yuan but less than 500,000 yuan, or confiscation of property.

If the credit card is overdue for more than 6 times in two years, then you can't apply for a provident fund loan. A short-term careless overdue once or twice may still be possible, but if it is overdue three times in two years, then our provident fund loan will be beyond our reach. Because ordinary banks or provident funds mainly rely on the credit records of lenders in the last two years when handling credit business. Therefore, those cardholders who want to apply for provident fund loans to buy a house must pay back on time when using their credit cards.

If the overdue period is not very serious, then theoretically we can still handle the bank loan business. Many cardholders who want to borrow money to buy a house are overdue and have a bad record of credit investigation. In this case, if you apply for a commercial loan, most banks will raise your benchmark interest rate by 10% because of your credit problems. Obviously, the cost of buying a house will increase greatly. If we are overdue many times and seriously, then you will be directly refused the loan by the bank. Therefore, when using a credit card, considering the plan to buy a house in the future, it must not be overdue.

Does the large repayment pay the principal or interest?

For prepayment, whether it is equal principal and interest or average principal, if prepayment is selected, the repayment amount is principal, not interest.

This is because the bank calculates the principal when it calculates the loan, so when we repay the loan in advance, we also pay the principal, and the interest is generated according to the amount of the principal and the time of borrowing, so after we repay the loan in advance, the interest will be recalculated.

Give a simple example:

If the loan from the bank is/kloc-0,000,000, and the loan interest rate is 4.9%, the total repayment amount is about/kloc-0,570,000 yuan, and the interest is close to 600,000 yuan.

If 200,000 yuan is repaid in advance, the loan principal will become 800,000 yuan, regardless of whether the policy allows or not, and whether the liquidated damages occur or not. At this time, the comprehensive repayment will become about 1, 250,000 yuan, and the total interest will be reduced by 45,000 yuan.

Repay the loan in advance in the early stage of the loan or be charged liquidated damages.

Banks generally don't allow borrowers to prepay when the loan is less than one year, and they also have different requirements for liquidated damages for prepayment. Some banks have to pay 3-6 months' interest if they repay the loan in advance for less than one year, and some banks do not charge liquidated damages if they repay the loan in advance for five years. The specific demand depends on the regulations of the lending bank.