In the end, which one is cost-effective, should be combined with the actual situation of the individual. Under normal circumstances, it is definitely better to repay the loan in advance from the provident fund, because it can effectively save more costs. Let's take a look at the difference between the two.

1. What's the difference between prepayment of provident fund and monthly repayment of provident fund?

In fact, the monthly payment is a change in the repayment method, which will change from the original repayment amount to all housing reserves. Repayment benefits can effectively reduce the monthly repayment pressure, but the monthly repayment principal and interest have not changed. For example, the loan principal is 500,000 yuan, the loan term is 20 years, and the monthly repayment amount is 2,835.98 yuan. The borrower's monthly contribution is 1.500 yuan. After monthly hedging is selected, 1.500 yuan will be directly transferred to the loan account, and the remaining 1.336 yuan will be repaid in cash.

Early repayment is to use the provident fund in personal account to deduct the loan interest. After offsetting the remaining principal, the monthly repayment amount will be reduced. This method can effectively save interest expenses. Let's take the above example as an example. After one month of normal repayment, if 50,000 yuan is repaid in advance, the monthly repayment amount can be reduced to 255 1.92 yuan, saving interest 1798 1.34 yuan. This means that paying the principal in advance can save more interest.

Second, what is the prepayment of provident fund?

At present, there are two ways to repay the loan in advance, one is to reduce the monthly repayment amount without changing the repayment period, and the other is to reduce the repayment period without changing the monthly repayment amount.

Three, what is the monthly withdrawal of provident fund repayment?

After entrusting to repay the loan every month, employees do not need to repay the loan during your entrustment period. The payment amount is mainly that the remaining amount in the housing provident fund must be 100 yuan. During the processing of 1, the housing provident fund must be repaid in more than 6 installments, so that after the monthly repayment is entrusted, the provident fund can be withdrawn to extend the payment period before the payment amount is used up, and there is no restriction once a year.