If you find it difficult to immediately find the amount you need to buy an apartment, a mortgage loan comes to the rescue. But often the conditions for such a loan can be quite onerous, as a result of which housing eventually becomes prohibitively expensive. You can remove an onerous debt to the bank by repaying the entire mortgage or a significant part of it ahead of schedule.
It is necessary
- - passport;
- - loan agreement;
- - the amount sufficient to repay the loan.
Instructions
Step 1
Examine the loan agreement concluded with a bank or other credit institution. Not every bank provides an opportunity to repay a mortgage loan ahead of schedule. For example, the agreement between you and the lender may clearly state that the loan can only be repaid after a certain period. This is due to the fact that the bank may not receive the expected profit in the form of interest in case of early repayment of the loan amount by you.
Step 2
Pay attention to whether it is specified in the agreement that in case of early repayment of the mortgage loan, you are obliged to pay the bank also the interest calculated for the expected time of using the loan. Sometimes in the contract, such payments may be called a fine or commission for the provision of services for early payment of debt.
Step 3
Check with the bank if in your case there are restrictions on the amount that you have the right to deposit ahead of schedule to repay the mortgage loan. If the amount is allowed to be paid only in installments, you may have to write an application for permission for such an action every time. The application is reviewed by the credit committee, but there is no guarantee that its decision will be positive every time you apply.
Step 4
If the above restrictions on your agreement do not exist, determine for yourself how much and in what reasonable time frame you can pay to pay off the debt. Try to correctly calculate your financial capabilities. The best option for those who have the entire required amount is to completely and as soon as possible close their obligations to the bank.
Step 5
Notify the banking institution of your intention to repay your mortgage early. Keep in mind that some banks require you to notify them about the upcoming repayment for a certain period, for example, two weeks or a month in advance. If necessary, wait for the decision of the credit committee on your matter.
Step 6
Deposit the required amount to the bank account. Be sure to get a certificate from a bank employee confirming the fact of repayment of the mortgage loan. It will also not be superfluous to ask to check your account again to make sure that all funds are received and that the promissory note is fulfilled. After that, in accordance with the established procedure, the encumbrance is removed from the property. Now you can rightfully consider yourself the owner of your own home.
