How many years is it worth repaying the loan in advance?
1, this mortgage should consider using provident fund or commercial loan. If you use the provident fund, it is not recommended for buyers to pay off the provident fund loan in advance, because the interest rate of the provident fund loan is very low, and the ratio of inflation and currency depreciation is more than this every year.
2. Secondly, for commercial loans, it is reasonable for bank staff to suggest paying off the loan within the first third of the total repayment time if it is the repayment method of equal principal and interest. Because of the repayment method of equal principal and interest, the monthly mortgage payment in previous years was almost always to pay interest, and the principal was very small. The sooner you pay back the money in advance, the more money you save, and you don't have to pay so much interest.
3. If it is the repayment method in the average capital, it is reasonable for the bank staff to suggest paying off the loan within the first half of the total loan time. Because the principal repaid by average capital repayment method is fixed, the proportion of principal is relatively large, and the interest is much less than the equal principal and interest.
Is it worth buying a house and repaying the loan in advance?
1. The sum of the loan principal and interest repaid each month by the equal principal and interest repayment method is fixed, and the monthly repayment pressure is balanced, but the monthly repayment principal and interest are different. Loan repayment has more interest and less principal in the early stage, and more principal and less interest in the later stage.
2. If the loan is paid off in advance, the one-time repayment amount is the remaining principal and outstanding interest on the day when the loan is paid off. The amount of interest saved by prepayment is related to the time to pay off the loan in advance. The sooner you repay the loan in advance, the more interest you will save.
3. People who are suitable for repaying the loan in advance need to meet the following three conditions: First, choose the equal principal and interest repayment method, and such people will repay the loan in advance within 5 years before repaying the loan, because they can save a lot of interest. Secondly, I have spare money in my hand, but I have no other way, or it is lower than the loan interest rate. After that, it is unlikely that there will be any big expenditure in the near future.
With regard to the cost performance of repaying loans several years in advance, common provident fund and commercial loans are both very common loan forms, and the interest rate of proportion and interest is different, so it is necessary to comprehensively understand the relevant contents according to the specific loan forms. Is it worthwhile to buy a house and repay the loan in advance? Choose the right loan method according to different loan forms, and the advantages of different people are different. You can refer to these contents.