Interest rate hike is expected to intensify. Is it cost-effective to repay the mortgage in advance?

Although the central bank has repeatedly denied it, CPI? Consumer price index? Even if it hits a record high, people are still full of speculation about the expectation of raising interest rates. A few days ago, the reporter got news from well-informed people in Beijing's banking industry. At present, banks have raised the deposit interest rate for the industry, so it is imperative to raise the deposit and loan interest rate. However, even if the interest rate is raised, it must be small.

According to analysis, if the bank raises interest rates by 25 basis points (0.25%), the monthly repayment of buyers will increase by 2.9%. Although it seems that the impact will not be great, but recently Shandong, Nanjing and other places in advance owing on the loan momentum surging, what is the situation in Beijing? According to the statistics of ICBC Beijing Branch, the prepayment rate of mortgage issued by the bank is as high as 49. 1%. Under the expectation of raising interest rates, will Beijingers like Shanghainese and Guangzhou people who have always liked to repay in advance and do not have to pay liquidated damages for repaying loans in advance be more inclined to repay in advance? Is it cost-effective to prepay? What problems and details should be paid attention to? The reporter interviewed relevant persons of Beijing Construction Bank and Agricultural Bank.

Count the advantages and disadvantages of repaying loans in advance

Repaying the loan in advance is naturally derived from interests. Teacher Yang of Beijing Agricultural Bank analyzed the advantages and disadvantages of repaying the loan in advance for us. However, he stressed before the analysis that personal consumption loans are long-term loans, and interest rates are adjusted once a year. In other words, even with the recent interest rate adjustment, the new personal mortgage interest rate will be 1 from next year, so don't worry. Moreover, because the loan is also due to lack of funds, a small interest rate hike will not be great for personal influence, so it is unnecessary to blindly repay the loan in advance.

Let's talk about the advantages first. First of all, we must pay less interest. The original loan was due to lack of funds. If the current economic conditions permit, most people are willing to pay off their debts in advance. The most direct benefit of repaying the loan in advance is that you can pay less interest. The second is to get the real estate license. After buying a house with a loan, use the real estate license as collateral. But if you pay back the money in advance, the real estate license will be in your own hands, and the owner will be much more free when buying, selling and transferring the house.

However, there are also problems. First, because the lender's loan interest is executed according to the signed contract period, the shorter the loan period, the lower the interest rate, and repaying the loan in advance is actually paying more interest. Second, choose a provident fund loan, and don't repay the loan in advance within the first year. According to the relevant provisions of provident fund loans, partial prepayment should be made after the loan repayment 1 year, and the repayment amount should exceed the repayment amount of 6 months; The third is the interest loss of the provident fund, because after repaying the loan in advance, the provident fund will stop being used, and will be deposited at the current interest rate until retirement. This piece of interest loss is not small; The fourth is interest rate risk, because the loan interest rate is floating. If the People's Bank of China adjusts the interest rate, the interest rate of the borrower's repayment will change. Therefore, if the interest rate is lowered after prepayment, the borrower may have some losses, but under the expectation of raising interest rates, prepayment is cost-effective.

What on earth prompted people to repay in advance? He believes that on the one hand, people's income level has improved, on the other hand, investment channels are narrow, so that lenders are still more willing to go to the bank to repay. In recent years, the stock market has been depressed, and investment products such as funds and trusts have just been launched. If the income of other investment products exceeds the interest rate of commercial mortgage, residents who will settle will feel that it is most cost-effective to repay the mortgage first; Third, many residents are not used to "living in debt" and always feel that it is not practical to borrow money to live.

Faced with the current situation, Mr. Yang thinks that repaying the loan in advance is not suitable for anyone. Repaying the loan in advance, the current economic conditions should be better, and the money on hand is temporarily useless. If the buyer's monthly income is not high, but the income is stable, it is more suitable for long-term loans and gradual repayment, which will not affect daily life.

For a simple example, Mr. Zhang borrowed 654.38 million yuan from the bank to implement the commercial loan interest rate. According to the calculation, at the end of the fifth year after the loan, he paid the accumulated principal of 43,085.75 yuan, paid interest of 22,268.11yuan, and the remaining loan balance (principal) was 5,695,438 yuan+04.25 yuan. If the original loan contract remains unchanged, the accumulated interest will be paid to the bank at the end of the repayment period 10. If you apply to pay off the loan in advance at the end of the fifth year, you only need to return the remaining principal of 56,965,438+04.25 yuan. In the first five years, because Mr. Zhang occupied a large amount of loans in the later period, the actual interest incurred and paid was correspondingly large, accounting for 72.52% of the total interest; In recent five years, because most of the principal has been returned, the interest actually incurred and paid is less, accounting for 27.48% of the total interest. Through calculation, it can be seen that the average interest rate of loans in the first five years is much higher than that in the last five years; The average annual interest rate of loans in the last five years is only 2.97%, which is lower than the interest rate of any bank loan at present. Therefore, if there is no better investment direction, he should pay off all the loans at one time, which can save more than 8000 yuan in interest; If he is good at investing, he doesn't have to pay back the money in advance. He can invest this 56,000 yuan in the stock market, postal market, funds and so on. It is equivalent to borrowing money from the bank to invest at a very favorable interest rate. As long as the annual return on investment is higher than 2.97%, it is cost-effective.

Don't forget to get the money back after paying off the loan.

If you weigh the pros and cons and decide to repay the loan in advance, then you need to pay attention to the following procedures.

There are two ways of prepayment: one is partial prepayment. That is, the borrower repays part of the loan in advance, but part of the remaining house payment still needs to apply for a bank loan.

In this case, the bank will generally require the borrower to inform the bank in advance for a certain period of time, and the bank will also require the borrower to repay the prepayment according to the integer multiple of 10000 yuan. The borrower should go to the loan bank to get the loan contract change agreement, and then go to the developer to stamp and sign it. The borrower shall also sign or seal the change agreement and return it to the loan bank. The loan bank requested to modify the original loan contract, which included early repayment.

The other is full prepayment. That is, the borrower pays off the remaining loans in one lump sum after repaying part of the loans. It is relatively simple for banks to handle this one-time repayment in advance. Customers are generally required to notify the bank in advance? Usually 10 working days in advance to 1 month? ; The bank calculates the total amount owed by the customer, and designates the customer to pay off the money in the bank and pay the interest of the current month; The bank will send the deed to the law firm designated by the contract, handle the cancellation of the mortgage loan, and register with the real estate management department; After the lawyer has gone through all the formalities, he will inform the owner to take back all the property contracts. Some banks can directly return the real estate license or purchase contract to customers as long as the procedures are complete and do not need to go through a lawyer. As a citizen of Beijing, major banks basically don't charge liquidated damages for repaying loans in advance, but it should be an international practice to collect liquidated damages.

Pay off all the loans in advance, and don't forget to get your money back from the insurance company and the tax department. According to the current regulations, you must buy insurance for housing loans. After the borrower repaid all the loans in advance, the original individual housing loan contract of Jiabao was also terminated in advance. According to the relevant regulations, the borrower can bring the original insurance policy and proof of paying off the loan in advance, and return the premium paid in advance to the insurance company on a monthly basis. Paying off the loan in advance and returning the insurance premium must be based on whether the original house is an existing house or an auction house, or the actual period of the insurance premium of the auction house. Generally, the insurance period of faster houses over half a year is calculated by subtracting 1 year from the loan period? Discount rate and quick calculation coefficient of original lump sum premium, etc. The calculation formula is: early repayment of loan and refund of insurance premium = present value of insurance premium paid in early repayment-present value of insurance premium occupied before early repayment in early repayment.

Then go to the tax department to refund the tax. When buying a commercial house, all the family members who can get tax refund should be written into the purchase contract as the property owners, and after signing the contract and paying the house price, they should apply for "deducting the personal income tax paid by the buyer" and obtain their "general tax payment book". You can get the real estate license after paying off all the loans in advance, and you have to go to the tax department for tax refund within 6 months after completing the real estate license.

Experts suggest repaying the loan in advance.

Yu Xiansheng of Beijing Construction Bank suggested that you should pay attention to the loan method if you expect to repay the loan in advance.

At present, there are basically two repayment methods for individual housing loans in Beijing: one is equal principal and interest repayment, and the other is equal principal repayment. At present, the repayment method of equal principal and interest is generally adopted. According to this method, the borrower needs to pay the same amount to the bank every month. In fact, both methods have their own advantages and disadvantages. However, if you consider that you may repay the loan in advance in the future when applying for personal housing loan, you may wish to choose the new repayment method in average capital, and try to choose a shorter loan term when lending, because the longer the term, the more interest you will pay in advance. If average capital's repayment method is adopted, the advantage is that the principal will remain unchanged and the interest will gradually decrease. If the loan is repaid in advance during the loan period, the interest expense is relatively small because more principal is returned. However, if the repayment method of equal principal and interest is adopted, the interest expense is the largest and the principal is the least in the initial repayment period when the monthly repayment amount is equal, and then the interest expense is gradually reduced and the principal is gradually increased. Therefore, under the same loan term, the latter will pay higher interest than the former.

For example, Mr. Jia chose a loan with a maximum term of 30 years and a total amount of 680,000 yuan. The monthly repayment amount in the first year is 3906.62 yuan, of which 3 160.99 yuan is interest and 745.63 yuan is principal. This customer * * * repaid the principal of 745.63× 65,438 yuan+February = 8,947.56 yuan and the interest of 365,438 yuan +060.99 yuan in the past year. It can be seen that under the method of matching principal and interest, most funds only pay interest, and the principal only accounts for 19. 1%, so it is not cost-effective to repay in advance.

In addition, if it is for housing transfer and early repayment, why not choose mortgage? Can reduce your interest loss. However, at present, the procedures for remortgage in Beijing are still very complicated. The re-mortgaged property must be in the eighth district of the city. In addition, the original mortgagor must have a real estate license. It should be noted that some commercial housing project developers have mortgaged their land, and such houses cannot obtain the real estate license issued by the real estate bureau. In the process of re-mortgage, banks, lawyers and intermediaries responsible for the guarantee should go to the real estate bureau to verify whether the project land has been mortgaged. If the land is mortgaged, the developer agrees to change the pre-sale registration, go to the premises bureau to change its name, or mortgage it.