Is it really cost-effective to repay the mortgage in advance?
Early repayment is a very common thing, but what buyers need to pay attention to is whether it is really cost-effective to repay the mortgage in advance before early repayment, which needs to be determined according to the specific circumstances of the lender. Not everyone is suitable for early repayment, and the expenditure of mortgage interest generally occurs in the early stage of repayment, but in the later stage, most of the interest has been paid off, so it is not cost-effective to repay the loan in advance. If you have idle funds on hand, it is also a good choice to repay the loan in advance. In particular, some friends who don't like to "pay back their debts" can consider prepayment if the mortgage is in the early stage of repayment. On the one hand, they can pay off the loan as soon as possible, and on the other hand, they can save a lot of mortgage interest.
What are the precautions for prepayment?
1, prepare the information.
For borrowers who intend to prepay, relevant materials need to be prepared before applying for prepayment. Generally, after applying by phone or in writing, you should bring your ID card and loan contract to the bank for approval. If it is a borrower who has settled all the balance, after the bank calculates the remaining loan amount, it is convenient for the borrower to save enough money to repay the loan in advance. If you are a customer or owner of the mortgage business, you must find a professional guarantee institution to do entrusted notarization, so as to avoid the risk that the customer will not buy it after the owner repays in advance or the owner will raise the price after the customer pays the final payment with the down payment.
2. Pay attention to bank regulations
Different banks have different regulations on prepayment. Some banks require borrowers to repay at least one year before they can apply for early repayment, but some banks say they can apply for early repayment at any time. Therefore, property buyers should pay attention to the specific regulations of the banks that handle loans.
3. You don't have to pay the provident fund first.
If property buyers apply for a portfolio loan when buying a house, there is no need to repay the provident fund in advance, because for provident fund loans, only the money in the provident fund account must be used to pay off the provident fund loan first. If it is other self-owned funds, it can be decided whether to repay commercial loans or offset provident fund loans first according to personal preferences and needs.
4. Is there a better financial channel?
If property buyers do not have better financial channels, then mortgage is actually a loan with very low interest rate, so for these families, choosing to use idle funds to obtain it may save more interest than repaying the loan in advance. Therefore, families with a financial mind might as well make good use of their money to go to Qian Shengqian. However, it should be noted that financial management also has risks.
The above is about whether it is really cost-effective to repay the mortgage in advance, and what are the precautions for prepayment. Therefore, Bian Xiao suggested that you know your own situation before deciding whether to prepay. Even if you decide to prepay yourself, you should also pay attention to matters needing attention and related requirements to ensure that there will be no financial problems after prepayment.