1. After repaying part of the mortgage in advance, the customer chose to shorten the repayment period and keep the monthly payment unchanged, thus actually reducing the interest. It's just that the customer didn't choose to reduce the monthly payment and keep the repayment period unchanged, so it seems that there is no reduction in money on the surface, but after all, the repayment period is shortened, so the customer can settle the debt earlier.
2. The mortgage is subject to a floating interest rate, and the subsequent interest rate rises, and the interest generated will increase accordingly. It is precisely because of this that, on the whole, it seems that there is no reduction in money, but there is a certain reduction in interest on the mortgage loan actually repaid in advance, but the increase in interest cannot offset the floating interest rate.
If you are worried that the bank has not made any adjustment after repaying the mortgage loan in advance, or charged interest according to the original repayment plan, the customer can also call the customer service of the bank to inquire clearly (note that sometimes repaying the mortgage loan in advance may require a penalty of a certain fee).
Is it better to shorten the repayment period of mortgage or reduce the monthly payment?
In the process of mortgage repayment, the prepayment operation was carried out. After paying some money in advance, customers can choose to shorten the repayment period and keep the monthly payment unchanged. You can also choose to keep the repayment period unchanged and reduce the monthly payment. In fact, this mainly depends on the personal wishes of customers.
If you choose to shorten the repayment period, the repayment period will be accelerated and the interest to be repaid will be reduced; If you choose to reduce the monthly payment, then the monthly repayment pressure will be reduced. Of course, interest will also be reduced, but it may be less than shortening the repayment period.
If the current monthly payment does not have much repayment burden, and you just want to pay off the mortgage as soon as possible, you can choose to shorten the repayment period; If you feel that the current monthly repayment pressure is a bit high, you can choose to reduce the monthly payment.
Of course, if the customer has sufficient funds, it is also feasible to choose to pay off in advance. After paying off the mortgage in advance, you can go through the mortgage formalities as soon as possible.