Mortgage loan 15 years, and now it has been paid off for 7 years. It may not be appropriate to pay off in one lump sum. If there are no special circumstances, it is better to consider it, because the longer the mortgage loan, the less interest, but the only thing left is to repay the principal. If it is paid off at one time, it is more cost-effective to invest money in wealth management products to earn interest.
First, it is not advisable to pay it off at one time.
In the later period, the principal is basically repaid, because there is too much interest in the early period, and higher interest is used in the first half of the mortgage repayment cycle, and the interest in the remaining half of the mortgage repayment cycle is less. At this time, if you choose to repay the principal at one time, it seems that there is no pressure to repay the mortgage later, but if there are other better investment methods, this fund can earn interest through investment, which will be more suitable than paying off the mortgage at one time.
Second, it is more appropriate to choose investment and financial management.
Assuming that there are 500,000 to 6,543,800,000 funds to invest in wealth management, it is more appropriate to earn tens of thousands of interest income every year. If you put this money in the bank deposit, you can earn 4% interest every year, and you can also get 20,000 to 40,000 yuan, which is better than paying off the mortgage at one time. By managing funds in this way, we can make rational use of funds and create more benefits for ourselves through investment and financial management.
To sum up:
The mortgage was borrowed for 15 years, and now it has been paid off for 7 years. Although it can alleviate the pressure of continuing to repay the mortgage in the later period, it is basically to repay the principal in the later period. If so, you should choose to invest your money in other wealth management products that can generate interest, but you will get more investment interest every year, which is better than paying off the loan at one time.
The average capital borrowed 15, and it has been seven years now. Is prepayment appropriate?
The average capital borrowed 15, and now it has been seven years, so it is not appropriate to repay in advance.
In the average capital, the loan amount is fixed according to the principal of the loan term, and the interest paid after deducting the repaid principal every month will also decrease. The monthly repayment amount is not fixed, the monthly repayment amount in the early stage is more, and the repayment amount in the future is less, which puts greater pressure on the buyers in the early stage, but less pressure on the later stage. In this case, early repayment is cost-effective.
Equal principal and interest, loan principal and total interest shall be repaid monthly according to the loan life, and the monthly repayment shall be fixed. In this case, prepayment is not cost-effective.
Extended data
The characteristics of the equal principal and interest repayment method are that the principal increases month by month, 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. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way and facilitate each family to determine the repayment ability according to their own income.
Compared with the two, in the case of the same loan term, amount and interest rate, in the early stage of repayment, the monthly repayment amount of average capital is greater than the equal principal and interest, while in the later stage, the monthly repayment amount is less than the equal principal and interest. That is to say, according to the whole repayment period, the repayment method in average capital will save the expenditure of loan interest.
Generally speaking, the repayment method of equal principal is suitable for borrowers who have a certain economic foundation, can bear heavy repayment pressure in the early stage and have an early repayment plan. Matching principal and interest repayment method is convenient to arrange income and expenditure because the monthly repayment amount is the same, and it is suitable for borrowers whose income is relatively stable because economic conditions do not allow early repayment and excessive investment.
Is there less interest on prepayment of mortgage?
The interest on prepayment of mortgage will definitely be reduced. There are three main ways to repay the loan in advance:
Pay off in full in advance:
If the mortgage is paid off in advance, the interest will only be calculated until the day when the mortgage is paid off, and then the interest will no longer be calculated, and the interest will naturally decrease. However, there is great pressure to pay off all in advance.
Partial prepayment, with the loan term unchanged:
Partial repayment in advance can reduce the monthly repayment amount and interest and reduce the repayment burden without changing the loan term.
Partial repayment in advance, shortening the loan period;
If you repay part of the loan in advance and shorten the loan term, the interest will be reduced, and it will be much less than the second method, but the monthly repayment amount will remain unchanged.
How do enterprises borrow money?
Choose a loan bank
According to the regulations of the financial supervision department, banks can raise or lower the loan interest rate within a certain range when issuing commercial loans. For example, the loan interest rate of many local banks can rise by 30%. In fact, going to the bank for a loan is the same as going to the market to buy things. You have to pick and choose, shop around and choose good and cheap goods. Relatively speaking, the loan interest rate of state-owned commercial banks is lower, but the procedures are stricter. If your loan procedures are complete, in order to save the financing cost, you can compare the loan interest rates and other extra charges of various banks through personal "bidding" and choose the bank with lower cost to handle mortgage, pledge or guarantee loans.
Housing loans can also be used.
If you have the intention to buy a house and have enough money in your hand, then you "misappropriate" the money for starting a business and then apply for a mortgage loan from the bank. Housing loan has the lowest interest rate among commercial loans. For example, the annual interest rate of housing loans within five years is 4.77%, while the annual interest rate of ordinary commercial loans for three to five years is 5.58%, with a difference of 0.8 1 percentage point. This curve loan method has lower startup cost. If the entrepreneur has bought a house, he can also use the existing house as a mortgage for ordinary commercial loans, which can be used as the start-up capital for starting a business.
Choose the loan term
Bank loans are generally divided into short-term loans and medium-and long-term loans. The longer the loan term, the higher the interest rate. If entrepreneurs need to use funds for not too long, try to choose short-term loans. For example, they can borrow a loan once a year for two years, which can save interest expenses. In addition, venture financing should also pay attention to the trend of interest rates. If the interest rate trend is high, you should apply for a loan before raising interest rates, so that you can enjoy the low interest rate before raising interest rates that year. If the interest rate trend tends to decline, the loan will be suspended when the capital demand is not urgent, and it will be handled in due course after the interest rate is lowered.