What are the mortgage repayment methods? What are the conditions and procedures for mortgages?

Buying a house is a major event for every family. Most families cannot do without loans. Loans must be legal and compliant. We must choose our own repayment method based on our repayment ability and future income expectations. We must repay on time to avoid a bad credit record. Today we mainly learn about the mortgage repayment methods.

Contents of this article

1. What are the mortgage repayment methods?

2. What conditions and procedures are required for mortgage loans?

3. What does mortgage guarantee fee refer to?

What are the mortgage repayment methods?

1. Equal principal and interest repayment. This is a method of equal monthly repayment of the principal and interest of the loan. Housing provident fund loans and most banks' commercial personal housing loans all adopt this method. In this method, the monthly repayment amount is the same.

2. Equal principal repayment. This means that the borrower evenly distributes the loan amount to be repaid in monthly installments throughout the entire repayment period, and at the same time pays off the loan interest from the previous trading day to the current repayment date. In this way, the monthly repayment amount decreases month by month.

3. Pay interest monthly and repay principal on maturity. That is, the borrower repays the principal of the loan in one lump sum on the maturity date of the loan (applicable to loans with a term of one year or less). The interest of the loan is calculated on a daily basis and the interest is repaid monthly.

4. Repay part of the loan in advance. The borrower can apply to the bank to repay part of the loan amount in advance, usually 10,000 or multiples of 10,000. After repayment, the lending bank will issue a new repayment plan, in which the repayment amount and repayment period will change, but the repayment method remains unchanged, and the new repayment period shall not exceed the original loan period.

5. Repay the entire loan in advance. The borrower can apply to the bank to repay the entire loan amount in advance. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

6. Borrow and repay at any time. The interest on the loan is calculated on a daily basis, and one day is calculated as one day's interest. You can pay off the money at any time without penalty.

What are the conditions and procedures for mortgage loans?

1. Conditions for applying for housing loan

1. The loan is used to purchase a house.

2. Have a legal and valid housing purchase contract or agreement.

3. The borrower has full civil capacity.

4. The borrower is between 18 and 65 years old.

5. The borrower has a good credit record and willingness to repay.

2. Mortgage application procedures.

1. Select a property and determine whether it meets the bank's loan conditions.

2. Apply for a loan.

3. The bank reviews the loan.

4. After the review is passed, the bank will issue a loan approval notice or a mortgage loan commitment letter, sign a commercial housing pre-sale or sales contract, and sign a building mortgage contract.

5. Handle housing mortgage registration and insurance.

6. The borrower opens a special repayment account and the bank releases the loan.

What is the mortgage guarantee fee?

The mortgage guarantee fee refers to the guarantee fee that the bank will pay to the borrower from a legal person or other economic organization or natural person with sufficient compensation ability based on the borrower's credit record in order to avoid the risk of mortgage loans.

If the borrower can find a friend or relative who is willing to provide a guarantee and has financial strength, then they can ask them to provide a written document and credit certificate to the bank; if no one is willing to be a guarantor, they need to go to a professional guarantee company and have them provide a guarantee for the borrower, and then they need to pay a mortgage guarantee fee. (The loan guarantee fee is the fee charged by the guarantee company)