Partial early repayment of a mortgage with a decrease in the term: when and how to do it correctly, pros and cons. Is it profitable to extinguish a mortgage loan ahead of schedule in small amounts?

Early repayment of a mortgage is profitable or not, is it worth it? Look for useful information in the article.

Any borrower dreams of getting rid of duty as soon as possible and forget it like a nightmare. Many people manage to accumulate the necessary amount, but it is still impossible to repay the mortgage correctly.

Read on our website another article on the topic: "Law on early repayment of a loan in 2021". You will learn about the features and how the early repayment of interest affects. You will also read the information on how to recalculate interest in an early repayment of a loan.

This article will reveal important points and nuances that need to be known and taken into account when trying to repay the mortgage. Read further.

What is a partial early repayment of a mortgage?

The amount of the loan, as well as the conditions for its provision, are always prescribed by the bank, in the contract. The borrower, in turn, undertakes to pay the entire loan amount and interest for its use. At the same time, the bank becomes the pledge holder of the purchased real estate. What is a partial early repayment of a mortgage?

• According to existing rules, the borrower is obliged to return the entire amount of the loan issued to him within the specified period, in accordance with the procedure stipulated by the contract. But at the same time, the law does not prohibit changing the deadline for repayment of the loan.
• Most often, borrowers draw up a mortgage for a long time, due to which the amount of payment becomes sparing. However, in order to reduce the amount of overpayment, each person tries to pay off creditors earlier.
• Early repayment of a mortgage is the payment of a leading period, with the payment of the amount exceeding the one that was prescribed in the contract.
• Often, borrowers think that early repayment is only the payment of the amount, earlier than the prescribed period. However, early repayment may be partial payment, larger.

It must be borne in mind that repayment is considered complete only when the borrower pays the entire credit balance, as well as accumulated interest. In the event that the borrower pays the amount that exceeds the monthly payment, but at the same time it is less than the remaining debt, repayment will be considered partial.

Is it possible to repay, close, pay a loan ahead of schedule without interest?

Anyone who has taken a loan can pay it ahead of schedule, having such an opportunity. However, you need to understand that the bank will not want to lose its interest and will in every possible way interfere with early repayment, putting forward advantageous conditions. So, is it possible to repay, close, pay a loan ahead of schedule without interest?

• The bank cannot prohibit early repayment.

But at the same time, the borrower will have to pay all the interest that should have accumulated until the next date of calculation.

How to arrange an early repayment of a mortgage: when and how to correctly close the loan ahead of schedule at the bank, reduce the term?

To arrange an early repayment of a mortgage, you need to perform a procedure from several steps. When and how to correctly close the loan ahead of schedule at the bank, reduce the term? Here are the tips:

• Inquire about the future repayment bank

First you need to familiarize yourself with the terms of the contract. By law, you can inform the bank about early repayment no later than in 30 days Before making a payment. However, the term prescribed in the contract may be less. It is important to consider the fact that interest will continue to accumulate until the moment of repayment.

• Making money to the account

You need to pay money to the account that was pre -tied to the contract. The borrower also has the opportunity to make payment from the bill, which was opened in another bank, but for this you will need to clarify the price of the operation in advance.

• Receipt of the repayment notice

Immediately after making payment and repayment of part of the debt, the bank must send the borrower the appropriate notification. In the event that there is no notification, the borrower has the right to contact the bank and demand the document for employees. The number of possible requests can be prescribed in advance in the contract.

If the debt is completely repayed, the borrower must contact the bank and request a certificate of confirmation of the performance of credit obligations. If the real estate purchased for credit money was pledged, then the bank must issue a package of documents necessary for the borrower in order to repay the registration record of the mortgage.

To reduce the term of mortgage, during early repayment, you need:

• Fill out an application for early repayment. This must be done a month before the repayment procedure.
• Next, it is necessary to pay the amount of payment, in the period established by the application.
• Then it will be necessary to apply for a reduction in the loan term.
• The bank does not have the right to refuse the borrower either to reduce the term or in early repayment.

In the event that the borrower wants to make less the amount of the monthly payment, instead of reducing the mortgage term, then no additional actions, do not need to. A similar option of actions, banks are always accepted by default.

Is the early repayment of a mortgage loan profitable, is it worth paying in small amounts, partially, is there any point: pros and cons of

There are two ways to pay a mortgage loan: annuity and differentiated.

1. The essence of the first method is that most of the payment, in the first years, will go to pay interest, and the lesser is less on the loan. Then everything will change: most of the payment will go on a loan, and less percent.
2. The differentiated type of payment is almost not used. In the past, this type of payment was a priority due to the lack of a ban on early repayment by the deadline and amount.

According to the annuity method of payment, the amount of mortgages is calculated more than according to differentiated, so that the first payments are reduced, in the first option. This is most important when buying real estate in order not to load the budget. Indeed, in addition to the purchase, the borrower will have to spend money on moving, possible repair and purchase of furniture. After these problems are resolved, it will be possible to take care of early repayment. Another advantage of the annuity payment is the ease of budget planning, as well as the possibility of collecting a spare amount. Is the early repayment of a mortgage loan profitable, is it worth paying in small amounts, partially, is there any sense?

• All experts agree that early repayment of a mortgage is profitable and recommend paying for a loan in the first 5-7 years.
• In this case, the bank will calculate the amount of payment, guided by a reduction in the loan. This will allow the borrower to save seriously.
• The minus of early, partial repayment is to reduce the benefit.

There are very few situations in which early repayment of a loan is very small. For example, this may be unprofitable for businessmen for whom it will be preferable to leave a large amount of money in business. Another disadvantage of early repayment of the loan can be considered a serious financial burden on the family budget. Sometimes, for extra money, there is more useful use. Basically, the pros and cons of early repayment of the mortgage are always determined by the selected payment scheme.

What will happen if you close a mortgage loan ahead of schedule: in a month

According to Russian law, the borrower has the right to close the mortgage loan ahead of schedule, for example, in a month, without paying additional commissions. But, if there was a clause in the contract that the borrower is obliged to notify the bank of early repayment, for example, for a week, and it is necessary to make a payment today, then the bank will have the right to take a commission for the service.

IMPORTANT: Before closing the mortgage ahead of schedule, carefully read the text of the contract to know all the nuances and “pitfalls”.

Errors with early repayment of a mortgage

Very often, trying to repay a mortgage ahead of schedule, borrowers make mistakes in their calculations. For example:

• When with a monthly payment 21000 rub., the borrower decides to introduce 60,000 rub.
• At the same time, he forgets that the amount in the account at this moment should be 81000 rub.
• All due to the fact that for starters, the bank will withdraw 21,000 from an account, as a monthly payment and only then 60,000, as the amount of early repayment.
• If there is only 60,000 in the account, then the write -off will not happen.

The second mistake made by borrowers is an attempt to accumulate money in order to repay the mortgage with one payment.

The benefit will be much larger if you extinguish the loan earlier. The fact is that during the accumulation of money, you can make several payments. At the same time, interest will decrease along with the amount. As a result, the savings from partial payments will be more than from paying the accumulated amount.

Another trick with which the bank can interfere with early repayment of a mortgage is a change in the schedule. If the borrower does not control the design, then the bank may change the payment schedule without reducing the deadline. This will mean that the bank took into account the amount of debt for several years. All this period, the borrower will pay only interest, for the loan itself. However, in the end, after some time, he will simply return to the original schedule and there will be no early repayment.

If you extinguish a loan ahead of schedule, do interest return?

They can return interest on early repayment of a loan, in case of erroneous overpayment, for example, due to incorrect calculations.

• In the event of an overpayment, the borrower must write a statement and send it to the bank.
• If the bank refuses to recalculate, then the borrower can write a complaint to Rospotrebnadzor.
• In case of further refusals, it is worth going to court.

Early repayment of a mortgage allows the borrower not only to save money, but also to create the so -called “Success situation”. In order to be able to cope with the mortgage ahead of schedule, without feeling the lack of money, it is necessary to correctly choose the lending method. The borrower, who complies with the payment deadlines prescribed in the contract, voluntarily agrees to overpay interest in the future. But at the same time, in the present, he will not infringe himself much.

Also, with early repayment of a mortgage, you must always be prepared for "tightening the belt." The benefit achieved by getting rid of the interest fee will be suitable for someone who spends no more than 10 percent per month, from the total income.

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