Housing provident fund loans, like commercial loans, can be repaid in advance after one year of deposit. After repayment, the loan principal will be reduced, and the monthly repayment amount and interest will be reduced accordingly.
The loan interest rate of housing provident fund is relatively low, slightly higher than the deposit interest rate of banks in the same period, and lower than the yield of bank wealth management products and money funds (these are all stable investments). You can get more income by investing the returned money. 3+
Many people will choose provident fund loans to buy a house. I believe everyone has many questions about repaying the mortgage in advance. Xiaojin will answer it today, I hope it will be useful to you.
0 1 the first question is: will the provident fund be charged a penalty for repaying the loan in advance?
Generally speaking, eligible loans can be repaid in advance without paying liquidated damages. See the policies and regulations of the local provident fund center for details.
During the repayment period of the provident fund loan, the borrower can choose to repay the loan in advance according to his own economic situation. Generally speaking, the provident fund center has a minimum amount limit for each repayment, such as 1 1,000 yuan. Of course, if qualified, you can also pay off the provident fund loan in one lump sum.
Question 2: What are the conditions for repaying the provident fund loan in advance?
1, self-raised funds to repay the loan in advance.
Generally speaking, it takes a period of time for borrowers to apply for normal repayment, or 1 month, or 6 months. Provident fund centers around the country have different requirements for this.
2. Using the balance of my provident fund account to repay the loan in advance by transfer shall generally meet the following conditions:
(1) has been repaid normally for more than a period of time;
(2) The applicant's provident fund account has a certain balance, which meets the requirements of the Center;
(3) The loan is not overdue at the time of application.
At present, many cities have launched a mobile phone service channel-mobile phone provident fund app, which supports online repayment of principal and early settlement of business, which is very convenient. Welcome everyone to use it ~
Question 3: What are the conditions for repaying the mortgage in advance?
Suitable for prepayment
1. If the psychological pressure of debt is great, you can repay the loan in advance. Due to the existence of inflation, the interest earned by the money on hand in the bank may not be as much as the interest saved by repaying the loan in advance.
2. If you need to use the house as other mortgage investment, you can also choose to repay the loan in advance.
It is unwise to repay the loan in advance.
1. If there are better investment and financial management options and the investment yield is higher than the mortgage interest rate, it is not appropriate to repay the loan in advance.
2. If your loan has basically paid off most of the interest, it is not recommended to repay the loan in advance.
Question 4: Is it cost-effective to repay the mortgage in advance? When is the best time to pay off?
Repaying the loan in advance is the principal of the loan. Generally speaking, it is more cost-effective to repay the loan in advance. The more principal is repaid in advance, the more interest expenses will be saved.
According to the opinions of professionals, the best repayment period is three to five years after purchase. During this period, the interest payment is not much, and it is most cost-effective to pay off the loan at one time.
Provident fund loans are hard to come by. Whether you choose to repay the loan in advance or not, you should carefully consider and make reasonable financial planning. I'm Xiaojin. If you have any questions, please comment below or write to me privately ~