1. Interest rate discounts: Since the state and banks now issue some preferential mortgage interest rate policies from time to time, it is recommended not to repay in advance casually if you enjoy this wave of discounts. Suppose you now enjoy a 30% discount on the interest rate. The 30% off 5-year loan interest rate is lower than the 5-year deposit interest rate. Even if you pay it off early, it is not cost-effective. The expected return of depositing this money in the bank is more appropriate than paying off the loan early. Don’t mention other investment and financial management.
2. The repayment period of a mortgage is generally very long. It takes more than 5 years to repay equal principal and interest. Most of the early repayment of the loan is interest. It is not cost-effective to repay in advance after 5 years. . If the equal principal repayment period exceeds one-third, the second type that is not suitable for early repayment is customers who use the equal principal repayment method, and the repayment period has exceeded 1/3.
3. Investment and financial management. There are many investment and financial management products in the financial industry now, such as stocks, funds, bonds, financial management products, etc. Especially for business people, working capital is very important. If you pay off your mortgage, you can go Borrowing money will cost more and take more time. To sum up, not everyone is suitable for early repayment. You can plan the surplus funds on hand, learn about other investment and financial management, and then ask the bank account manager to comprehensively evaluate whether you need to repay the loan early.