In many cases, buying a house does not end when you live in it. If you buy a house with a loan, you still have to repay the mortgage on time each month. Nowadays, social housing loans are a huge burden on many "house slaves". Some people even borrow down payments. Such high leverage always makes people feel like they want to be relieved. But as time goes by, Most people are becoming more and more capable of making money. When we have money, should we repay it in advance?

View 1: Don’t pay it back

Strictly speaking, this idea is not wrong. Housing loans are the loan category with the lowest interest rates on the market. The first provident fund loan is 3.25% for more than 5 years, and the base interest rate for commercial loans for more than 5 years is 4.9%. The interest rate is even lower than that of some financial products. The longer the loan period, the lower the monthly repayment. Why should you pay off such a low loan in advance?

View 2: Pay off in advance

This idea is correct. After taking a loan for decades, the interest alone is almost the same as the principal. It is not worthwhile to pay back so much interest. Now that you have money, you can pay it back in advance. This part of the interest can be saved. People who think this way must have a certain amount of capital in their hands, or they can take advantage of the opportunity to make money now and settle the future matters in advance, so that they will not worry too much about their future life.

Should we repay the provident fund early?

1. It is not recommended to repay the provident fund early.

The interest rate of the provident fund loan is low, so it is not suitable for early repayment. For commercial loans, it is best to repay in advance in the early stage of repayment. There is no need to repay in advance in the later stage.

2. It is necessary to repay in advance when the interest rate rises.

Basics of commercial loans. The interest rate is 4.9%. This was announced by the central bank on October 24. It is the lowest value in the past 10 years. It has been more than 4 years now. Because the low interest rates at that time reduced the cost of buying a house, it also provided support for the hot real estate market. However, with the introduction of various national control policies, the property market has stabilized, and it is difficult to continue to lower the benchmark interest rate. If the country raises the benchmark interest rate, it will affect all borrowers. Impact, if it is raised, the monthly payment will increase, and at this time it is necessary to recalculate the repayment interest rate. If it is too high, you can consider repaying the loan early.

3. The shopkeepers still repaid the loan in advance. Bar

Nowadays, the consumption behavior of young people is relatively avant-garde. It has become a trend to spend money in the future to enjoy the life of the present. Who doesn’t have a few credit cards? So, if you can't control yourself and have some money, you might as well pay it back in advance. You can't save it anyway, so you might as well pay off the mortgage.

To sum up, whether to repay in advance depends on the home buyer’s own situation. However, the editor would like to remind everyone that banks have specific requirements for repayment in advance, and banks do not accept repayment at any time. There are restrictions on the time and amount of the loan. It is best to ask the bank about the specific procedures. Some banks will also charge a penalty for early repayment.