Credit cards cannot be used to pay off mortgages. When a user applies for a mortgage, he or she will open an account at the lending bank, and the account opened will be used for repayment and deduction. To repay a mortgage, you deposit cash into a debit account, and the bank debits it on time. Credit cards can only be used for purchases and cannot be used to pay off mortgages.
How to repay a mortgage with a credit card backwards?
1. Credit cards cannot be used as a repayment account for mortgages. In other words, credit cards cannot use the credit limit to repay through consumption. Yes, you cannot enjoy the interest-free period of up to fifty days on your credit card.
2. Therefore, the so-called using a credit card to repay the mortgage loan is actually withdrawing cash from the credit card to repay the mortgage loan. Once a credit card uses the cash withdrawal service, it is the beginning of the cardholder's interest "trap": various banks charge a handling fee ranging from 0.5 to 1 for domestic cash withdrawals. In addition to the handling fee, the cardholder must also pay interest. , calculated based on the daily interest rate of 5 and the annual interest rate of 18. It is equivalent to borrowing a high-interest loan in addition to the mortgage.
3. Regarding whether misappropriating credit cards to pay off mortgages is considered illegal cashing out, some people in the industry said that this can only be said to be taking advantage of a legal loophole. However, the person also said that according to relevant legal provisions, malicious overdraft of more than 5,000 yuan can be sentenced to 3 years in prison.
What should you pay attention to when repaying a mortgage?
1. You need to contact the bank to adjust the repayment amount. Since it is the amount agreed between the home buyer and the bank, the monthly payment will not change with the central bank. Reduced due to interest rate cuts. Therefore, the home buyer needs to agree with the loan bank again to adjust the monthly payment amount according to the new interest rate starting from the first repayment date of the year. Otherwise, the bank will still calculate the monthly payment amount according to the original amount, so it will not be possible to enjoy the interest rate reduction in the short term. come practical benefits.
Commercial loans with equal principal and interest are suitable for home buyers with stable income. In most cases, the mortgage will be equal principal and interest, because for those buyers who know little about home buying or even home loan, all they need to know is just one How much is the fixed monthly payment? Equal principal and interest means that you have a fixed amount of money to repay every month. Although the overall interest will increase, it makes it easier for the borrower to arrange income and expenditure, and saves a lot of trouble.
2. The January monthly payment of equal principal and interest may increase. For commercial loans, due to different loan banks and repayment methods, the changes in the January monthly payment will also be different. Under the equal principal and interest repayment method, most banks will increase the monthly payment slightly in January. Specifically, while interest is decreasing, the adjusted principal paid has increased. This situation will change in February, that is, the monthly payment in February will decrease, and the monthly payment for the whole year will be based on February.
Equal-amount principal is suitable for home buyers who have relatively ample funds on hand. Because the principal of the mortgage loan is the same from beginning to end, the only difference is that the interest changes from more to less, so the monthly repayment The amount will decrease each month as time goes by. For home buyers who are in a hurry to buy a house and renovate it, the initial repayment pressure is too high and it is not a suitable choice. However, if you have ample funds on hand, it would be more cost-effective to choose equal amounts of principal and less interest.
3. It is not recommended to repay equal principal amounts in advance. Under the repayment method of equal principal amounts, the borrower's interest this month will decrease slightly, and the overall monthly payment will be lower than last year. Depending on the bank, the monthly payment in January will decrease or increase. Since repayments are based on equal amounts of principal, the first thing buyers pay back is mainly interest. When the central bank is currently in the interest rate cut channel, bank loan interest rates have dropped, making the interest repaid at this time relatively reduced. Therefore, in January of this year, There is no need to rush to pay off your loan early.