Repaying the loan in advance with equal principal and interest is the main repayment interest in the early stage, and the interest accounts for a relatively large proportion. The main interest in the later stage is the principal, so the earlier the repayment, the less interest.

According to the different repayment methods, the interest will vary greatly. Of course, if you want to reduce interest rates, you can choose to repay in advance, but banks also have provisions for prepayment. It is not that the earlier you make progress, the less interested you will be.

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If the customer repays the mortgage in advance by the equal principal and interest repayment method, and finds that the subsequent monthly payment is the same as before, the interest has not decreased, it should be because the customer has chosen to shorten the repayment period and keep the monthly payment unchanged.

It seems that interest has not decreased, but in fact interest has decreased. After all, after prepayment, the interest is no longer calculated according to the total loan amount, but according to the remaining unpaid principal. However, because customers choose to shorten the repayment period, the monthly payment has not changed, but because of this, customers can pay off their debts faster.

Of course, customers can also choose to keep the repayment period unchanged, and then reduce the monthly payment to reduce the pressure on monthly payment. After paying off the mortgage, the customer will find that the total interest paid by the mortgage that has been repaid in advance is less than the total interest expected to be paid by the mortgage that has been repaid in installments on time according to the repayment plan.

1. If the mortgage is repaid in advance, there will be no liquidated damages one year after the loan is completed. Repaying the loan in advance only pays off your outstanding principal, not all the interest first. One feature of the equal principal and interest repayment method is that within 20 years, the interest in the early stage is greater than the principal, and the interest in the later stage is greater than the principal. Under this premise, owing on the loan in advance is a bit tangled. But if you calculate the general ledger, you can still pay a lot less interest if you repay the loan in advance. I hope my answer is useful to you.

2. In theory, prepayment will definitely reduce interest expenses, but it depends on whether there is an agreement on prepayment in the loan contract. If there is a default clause, it depends on whether there is a penalty for prepayment. If the penalty is too heavy, it is necessary to weigh whether to repay the loan in advance. It should be noted that under normal circumstances, prepayment will pay a one-month penalty, and you can use this money to weigh whether to confirm prepayment. However, different banks have different policies. You can also consult your local bank. I hope my answer can help you.