First, the interest rate gap of early repayment is too large, which can save a lot of interest, but we should also pay attention to these points.
1, the time allowed by the bank to repay the loan in advance.
Banks are allowed to repay loans in advance at different times. Most banks can apply for early repayment after one year of repayment. If they repay in advance before the repayment time, they can demand to pay liquidated damages. Please consult your loan bank for specific terms and details.
2, the amount of housing loan arrears.
Mortgage is divided into two repayment methods: average principal and equal principal and interest. Among them, the proportion of principal in the monthly repayment of equal principal and interest increases month by month, and the proportion of interest decreases month by month.
If the repayment of equal principal and interest has reached the middle stage, it is not cost-effective to repay the loan in advance at this time.
The average capital is to divide the total loan amount by half the cost and calculate the repayment interest according to the remaining principal.
When the repayment period in the average capital exceeds 1/3, the borrower has actually paid half of the interest. If you choose to repay the loan in advance, you still have to pay more principal, which cannot effectively save interest expenses.
Therefore, buyers who want to repay the loan in advance can consider their own repayment stage. If the repayment time is not long, choosing to repay the loan in advance can effectively save interest expenses; If it is in the middle and late period, most of the interest has been paid off, so it is not suitable to repay the loan in advance.
Make sure you have a safe cash deposit in your hand.
We don't know which comes first, tomorrow or the day after tomorrow. Be sure to have safe cash in your hand, and it is safer to choose to repay the loan in advance.
Second, LPR mortgage interest rate adjustment The new mortgage policy was released, and all the new commercial loans were transferred to LPR. If you choose the floating interest rate of LPR+ basis point, you will have the opportunity to adjust the mortgage interest rate. In this mode, the mortgage contract will stipulate a date to reset the loan interest rate for the next cycle, and the adjustment period is generally 1 year. After the adjustment date, the pricing benchmark will select the LPR of the corresponding period in the latest month.
The five-year interest rate in Guangzhou is LPR+80 basis points. If the mortgage is reduced by 20bp, 654.38+0 million yuan, the monthly mortgage will be reduced by 654.38+0.24 yuan, and the interest will be reduced by 44,700 yuan. A 5 million, 30-year mortgage can be reduced by 62 1 yuan per month, and the interest will be reduced by 223,600 yuan accordingly.
To sum up, I am safe when I come. Now that you have stood in a very high position, you can only comfort yourself. The house bought at that time appreciated, which can also cushion the impact of high interest rates to a great extent.