It is cost-effective to repay the loan in advance. You pay back 1.5 million in advance. Strictly speaking, the interest you pay less every month is 1.5 million× 4.9%/1.2 = 61.2 yuan. Of course, if you can earn more money with 654.38+0.5 million, you don't have to pay it back.

It can shorten the repayment period. You can reconsider how much you have to pay back each month and then change the repayment agreement with the bank.

Second, is it cost-effective to repay the provident fund loan in advance?

Paying back the provident fund in advance is not necessarily cost-effective. If the owner's extra money is covered by slag and there is no better investment method, then he can choose to repay in advance. After all, prepayment can pay a lot less interest than the original loan plan. However, because the interest rate of provident fund loans for more than five years is only 3.25%, if you use this money to make some steady investments in Luzhou, or find good investment products for long-term investment, the income will exceed the interest on loan repayment, and there may be additional income. Provident fund loans refer to loans enjoyed by employees who pay housing provident fund. According to national regulations, all employees who have paid housing provident fund can apply for individual housing provident fund loans according to the relevant provisions of provident fund loans. 20 12 some cities relaxed the conditions of provident fund loans, among which the upper limit of housing provident fund loans in 9 counties of Linyi City, Shandong Province was raised from 200,000 yuan to 300,000 yuan from June 1. 20 14, 10 In June, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance and the People's Bank of China issued a document, including relaxing the conditions of provident fund loans, promoting loans in different places, reducing intermediate costs, canceling the housing provident fund personal housing loan insurance, notarization, new house evaluation and compulsory institutional guarantee, and reducing the burden on loan workers. Among them, employees who have paid for 6 months can apply for provident fund loans (currently 12 months). On August 17 and 15, the Ministry of Housing and Urban-Rural Development jointly issued a notice saying that the down payment for purchasing a second home with provident fund loans will be cancelled by 20% from September 15 and 1 day.

3. Is it worthwhile to advance the provident fund with average capital?

In the average capital, it is cost-effective to repay the provident fund in advance within five years, but it is not cost-effective if it exceeds five years. Among the repayment methods in average capital, how much interest can be saved by prepayment has a great relationship with the time of loan settlement. The earlier you repay in advance, the more loan interest you can save. However, if the borrower's normal repayment time has exceeded one-third of the loan period, early repayment can save interest at this time. Simply put, it is the most cost-effective to repay the average capital to the provident fund in advance, preferably within five years after the loan.

When you need to pay attention, no matter which way, it is best to choose according to your actual situation and economic situation. If the economy doesn't allow it, then pay back according to the contract, and there is no need to pay back in advance.

Difference between average capital of provident fund and equal principal and interest

1, different interpretations:

(1) average capital: Average capital refers to a repayment method of loans. During the repayment period, the total amount of loans is divided into equal parts, and the same amount of principal and interest generated by the remaining loans in the month are repaid every month. In this way, because the monthly repayment amount is fixed and the interest is less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is less and less.

(2) Matching principal and interest: Matching principal and interest refers to a repayment method. Matching principal and interest means paying the same amount of loans (including principal and interest) every month during the repayment period.

2, the calculation method is different:

(1) average capital:

Calculation formula of average capital loan: monthly repayment amount = (loan principal/repayment months) (principal-accumulated repaid principal) × monthly interest rate.

(2) Equal principal and interest:

Calculation formula: monthly repayment amount = [loan principal× monthly interest rate× (1interest rate )× repayment months ]=[( 1 interest rate )× repayment months]

3. The repayment characteristics are different:

(1) average capital: the principal of the equal principal and interest repayment method increases month by month, while the interest decreases month by month, and the monthly repayment amount remains unchanged; Compared with the repayment method of general capital, the disadvantage is that there are many interest expenses. Interest accounts for most of the monthly payment in the initial repayment period. With the gradual return of the principal, the proportion of the principal in the contribution is also increasing.

(2) Equal principal and interest: The characteristics of the equal principal repayment method: the equal principal repayment method keeps the principal unchanged, the interest decreases month by month, and the monthly repayment amount decreases; Because the monthly repayment amount is fixed and the interest is getting less and less, the lender is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less.