If you take out a mortgage loan for several decades and pay it off according to the schedule, you can pay the bank several times more than the apartment costs. But there are schemes that allow you to pay off the debt with smaller overpayments. In this article, we will tell you how to pay off a mortgage correctly and why you should always use partial early repayment.
Is it possible to pay off a mortgage loan early?
Every borrower has the legal right to repay loans before the date specified in the agreement. This right can be used free of charge, i.e. there can be no fines or fees from the bank. In this case, you can repay the debt in full or in part.
To make a payment correctly, you need to complete two steps:
Deposit funds in advance into the account from which the mortgage loan will be debited.
Submit an application to the bank for full or partial early repayment. It specifies the amount and date of debiting. Without an application, the money will be debited according to the schedule in the jordan mobile database amount specified in the agreement.
The write-off date often coincides with the monthly payment date, and the application must be submitted no later than the specific date specified in the loan agreement.
Many banks allow you to apply through a mobile app or online banking. But some credit institutions still require you to come in person. Contact your bank to find out exactly how to apply.
Who can repay a mortgage early?
The peculiarity of many mortgage agreements is that they have a title borrower and a co-borrower. The title borrower has no difficulties in repaying the debt early. But the co-borrower may have restrictions that depend on the specific bank. In some cases, the co-borrower is required to visit the bank office, while the title borrower can do everything remotely. Other credit institutions require that the co-borrower have a notarized power of attorney.