Repayment Mortgage

Most borrowers who obtained a mortgage loan after a certain time thinking about how quickly to complete the repayment of the loan. Of course, you should consider the feasibility and reliability of performance of such action. Early repayment of the loan serves as a method of saving money, which is a weight on a date. Repayment of a mortgage loan can be represented in the form of full and partial. And redemption done ahead of time. In case of partial prepayment the borrower pays an amount that will be credited in payment, with payments ahead of schedule, but it is not enough for the prompt and full repayment credit. In contrast to this method, full prepayment is a payment of a certain amount of borrowers to repay loans, and ahead of schedule on payments, but the size is introduced by the amount you must equal balance of debt zaemu. That is why, note: the full early redemption of the borrower to pay the full amount (all) of the loan.

In case of partial prepayment of the loan remains unpaid. When you have some money to repay the loan, to determine when it is better to implement. Indeed, some mortgage programs may have a ban on such repayment of loan during the first months mortgage loan. Typically, this is about 6-12 months. However, there are programs that can reduce interest rates in exchange for giving borrowers the right to early repayment of their loans. There are credit agreements or loan agreements, where there are no restrictions on the prepaid funds. In this case, the borrower can pay before the desired date your loan principal and interest, which is charged for the use of money. But why then are some credit institutions are bad for the early repayment of the loan? The answer is: in case of early repayment of such banks are losing customers, constantly bringing them to return, because in each such payment laid down the amount of interest which is credited for the use of money.

Banks benefit from stability. Clients, it is also very important and beneficial. Much more profitable for banks constant, predictable loan. To the credit institution is well when the borrower paid as specified in the schedule. If we consider such a plan, it is immediately clear that the early repayment of loans are most beneficial in the beginning, that is, in the early years of the loan, thus saving big money.