Of course, customers can also choose monthly payment when handling the provident fund loan repayment business. If they choose monthly payment, some funds will be deducted from the housing provident fund account every month to repay the mortgage principal and interest of the month.
Customers can also choose to use their own funds to repay the mortgage in advance. Whether you use the provident fund or your own money, you can reduce some interest by repaying part of the mortgage in advance. After all, the interest will be calculated according to the remaining unpaid principal. If the customer wants to repay the mortgage in advance, it is suggested that it is best to operate in the middle and early stages of repayment. Don't wait until the late stage of repayment, and the interest will be almost the same. Repayment in advance will not reduce much interest.
Does prepayment of mortgage save interest?
Loans will of course save interest in advance. At present, most banks' loans are repaid according to average capital or equal principal and interest. As long as they can save interest in advance, there will only be a difference in how much they save. If the repayment schedule is coming to an end, it is meaningless to repay the loan in advance. No matter which repayment method, the earlier the repayment, the more interest will be saved. For example, repaying the principal and interest in advance, most of the monthly repayment amount is interest, and the principal is less. If you repay in advance, you can save a lot of interest expenses.
Although equal principal repayment will pay more principal every month, prepayment can also save a lot of interest. When the loan is repaid, it can be returned in part or in full. Partial repayment can shorten the loan time and reduce the monthly repayment amount. If you feel stressed, you can reduce the monthly repayment amount after partial repayment. After full repayment, you should go through relevant procedures, such as mortgage of housing loans. No matter how you repay, you should choose according to the actual situation. In fact, when choosing whether to prepay, you can also calculate it according to your own loan interest rate. If the yield of the wealth management products you buy is higher than the bank loan interest rate, you don't need to repay in advance at all, and the rest of the money can still get good returns.