With the passage of time, house prices have risen year by year, and many property buyers have begun to feel the pressure of loans. In order to reduce the economic burden as soon as possible, many buyers choose to repay their mortgages in advance. However, in the process of repaying the mortgage in advance, the remaining principal payable actually increased. Why?

First of all, repaying the mortgage in advance can reduce the total loan period. Buyers choose to repay the mortgage in advance, which means that most of the loan principal and interest have been repaid. For property buyers, repaying the mortgage in advance can shorten the loan period, thus reducing the monthly repayment pressure. However, this will also lead to more remaining principal payable.

Secondly, repaying the mortgage in advance may generate additional penalty interest. Banks usually stipulate a certain penalty interest rate when issuing mortgages. For property buyers, repaying the mortgage in advance may lead to an increase in the remaining principal payable, thus generating more penalty interest. Although these penalty interests are not many, they will accumulate over time and increase the remaining principal payable.

Third, early repayment of mortgage loans may affect the credit history of buyers. When banks approve mortgage loans, they will check the credit history of buyers. If buyers choose to repay their mortgages in advance, their credit history may be affected. This will also lead buyers to face higher approval risks in future mortgage applications.

Finally, repaying the mortgage in advance may lead to the loss of loan concessions for buyers. Now, many property buyers can get preferential loan interest rates by repaying their mortgages in advance. However, this kind of preferential treatment is limited to a specific property and a specific loan period. If the buyers repay the mortgage in advance, they may lose these loan preferences, thus affecting the future loan interest rate.

To sum up, although repaying the mortgage in advance can shorten the loan term and reduce the monthly repayment pressure, it is inevitable that the remaining principal will increase, resulting in additional penalty interest, affecting the credit record and losing the loan preference. Therefore, when choosing to repay the mortgage in advance, buyers need to weigh the pros and cons and make wise choices. At the same time, banks also need to improve relevant policies and measures to provide better services for property buyers.