What is the most cost-effective way to pay off the mortgage for 20 years in a few years?
If the loan is only 20 years at the beginning, in fact, no matter which repayment method, it is best not to exceed half of the fixed number of years, that is, 10 years, especially in the average capital, because the interest money to be repaid later is getting less and less, so it is best to repay it in one lump sum when the fixed number of years is 1/3, so as to avoid too much loss. Of course, if you have money, you can apply for prepayment, but it is generally prepayment.
There is also prepayment, not just the remaining principal. There is also a certain penalty, and the amount of each prepayment cannot be less than 1 ten thousand yuan. Therefore, it is best not to be impulsive in repayment. Since you have chosen a mortgage before, you must be prepared when you pay back the money. In order to reduce the loss, you must make the repayment follow the relevant system of the bank.
If you want to repay in advance, no matter how many years you have applied for a loan, no matter what kind of loan you have applied for, it is the most cost-effective to repay within 1/3 years, but if you have already paid more than half of it, it is recommended not to repay in advance. After all, there is not much money that can be saved in advance!
Is the loan repaid 20 to 6 years in advance, or is it repaid in 20 years?
If the loan can be repaid in advance after 20 years to the sixth year, you can choose to pay off the remaining loan in one lump sum, because it is the most cost-effective to repay the loan in 1/3 years, no matter what kind of loan it is or how many years it has been used. But if you apply for a 20-year mortgage, you will choose to repay in advance in the sixth year. How much money is left after that and how much interest will be generated mainly depends on the repayment method chosen by the customer, as well as the loan interest rate, specific loan amount and prepayment amount.
Suppose a customer borrows 500,000 yuan and repays it in June, 2065,438+2008, and the loan interest rate is fixed at 5.09%. The calculation formula is: monthly repayment amount (principal+interest) = [loan principal × monthly interest rate ×( 1+ monthly interest rate) × repayment months].
It can be concluded that the monthly repayment amount is 3324.69 yuan (although the total monthly repayment amount is the same, the ratio of interest to principal is constantly changing).
According to the repayment plan, after the monthly payment is completed in June 2024, the remaining principal should be 388,977.46 yuan. However, due to the application for partial repayment in advance,100000 yuan was repaid in advance in June, so the remaining principal was 288977.46 yuan.
If the customer chooses to keep the repayment period unchanged and reduce the monthly payment, then in the subsequent repayment period, the monthly payment will be 235 1.74 yuan, and the total principal and interest will be 409,202.84 yuan (after prepayment, the monthly payment and interest will not be calculated according to the total loan amount, but will be recalculated according to the remaining unpaid part).
To sum up, 1/3 fixed number of years and 20 years mortgage is the most cost-effective. If the loan can be repaid in advance after 20 to 6 years, you can choose to pay off the remaining loan in one lump sum. However, if you have paid more than half of the time, it is recommended not to repay in advance. After all, there is not much money that can be paid in advance!