1. Income: After paying off part of the mortgage in advance, the customer can choose to shorten the repayment period and reduce the debt as soon as possible; You can also choose to reduce the monthly payment, which can reduce the monthly repayment pressure. Also, the interest that the customer has to pay after repaying the mortgage in advance can also be much less than the monthly installment repayment according to the repayment plan.

2. Disadvantages: Because many banks have regulations, customers must pay back monthly for a certain period of time according to the repayment plan. If the customer applies for prepayment, it is likely to pay a certain penalty.

Personal housing loan refers to the loan issued by the lender to the borrower for the purchase of ordinary housing for personal use. Personal housing loan business is one of the main asset businesses of commercial banks. Refers to the loan issued by a commercial bank to a borrower for the first time to purchase a house (that is, a house developed and built by a real estate developer or other qualified developers and sold to an individual).

Personal housing loans mainly have the following three loan forms:

(1) The full name of personal housing entrusted loan is personal housing guarantee entrusted loan, which refers to the personal housing loan entrusted by the housing fund management center to commercial banks by using the housing provident fund. Housing provident fund loan is a policy personal housing loan, on the one hand, the interest rate is low; On the other hand, it mainly provides such loans to low-and middle-income workers who pay the provident fund. However, because the interest difference between housing provident fund loans and commercial loans is above 1%, both investors and ordinary people who buy houses and live in their own homes are more inclined to choose housing provident fund loans to buy houses.

(2) Personal housing self-operated loans are loans granted to individual buyers with bank credit funds as the source. Also known as commercial personal housing loans, personal housing secured loans.

(3) Personal housing portfolio loan refers to the loan issued to the same borrower with housing provident fund deposits and credit funds for the purchase of self-occupied ordinary housing, which is a combination of personal housing entrusted loans and self-operated loans. In addition, there are housing savings loans and mortgage loans.

Potential borrower

The loan object should be a natural person with full capacity for civil conduct. The borrower shall meet the following conditions:

1. Have permanent residence or valid residence status in cities and towns;

Two, a stable occupation and income, good credit, the ability to repay the loan principal and interest;

Three, with the purchase of housing contracts or agreements;

Four, do not enjoy the purchase subsidy to not less than 30% of the total price of the purchased house as the down payment; 30% of individuals who enjoy housing subsidies are down payment for housing purchases;

Five, there are assets recognized by the lender as collateral or pledge, or units or individuals with sufficient compensation capacity as guarantors;

6. Other conditions stipulated by the lender.

What are the advantages of being able to repeat the loan? You will know after reading it!

With the continuous progress of the financial industry, many loan products are gradually upgraded to meet the needs of most users. For example, revolving loans are very popular with users. Once the quota is given, it can be borrowed repeatedly within the time limit. What are the specific benefits? Today, let's make a brief introduction.

1. What are the advantages of being able to repeat the loan?

At present, many young people apply for loans. Young people have a strong desire for consumption, unstable income and often face the problem of lack of money. Moreover, because of their general qualifications, they can't guarantee the success of loans every time, so they are more suitable for revolving loans that can be borrowed and repaid repeatedly.

Revolving loans can meet the actual needs of some people. After all, everyone is short of money. They may be short of money at the beginning of this month, they will be rich in a few days, and then they will be short of money at the end of the month. If you can't borrow again, you may need to apply for at least two loans, which will not only bring trouble to the borrower, but also lead to multiple credit records. Revolving loan can solve the problem at one time.

2. What revolving loan products are there in the market?

There are many such products. I suggest that you give priority to bank financial loans. For example, the revolving loan of China Post's consumer finance is such a loan product, which has the following advantages:

1, flexible borrowing and returning

As long as it passes the audit, it can be reused, up to 200 thousand.

2. Interest shall be calculated on a daily basis.

Revolving loans generally bear interest on a daily basis, and they can be repaid in advance without using or charging.

3. Safety

China Post Consumer Finance was established with the approval of the Insurance Regulatory Commission of the Bank of China and supervised by the CBRC. Compared with private loan companies, it is more suitable for people to handle.

Advantages and disadvantages of repaying loans in advance

First, the benefits of early repayment:

1. Compared with the original loan contract, prepayment can indeed save some interest expenses. Generally, it is most appropriate to prepay three years before repayment, and prepayment is also an excellent embodiment of personal credit record. In addition, users can settle all housing loans in advance and solve the pressure of debt work as soon as possible.

2. If the customer chooses to reduce the monthly payment after prepayment and keep the repayment period unchanged, it can also reduce the monthly payment pressure; If you choose to shorten the repayment period and keep the monthly payment unchanged, you can settle the debt earlier.

2. Disadvantages of early repayment: The early repayment of housing loans is likely to have contractual liquidated damages. If the general borrower repays the housing loan for less than one year, he must pay a certain contract penalty. Therefore, it is best to consult financial institutions before repaying loans in advance. If the user who applied for a housing loan has already repaid more than half of the loan period, then it is not worthwhile to repay the debt at this time. Because most of the interest expenses have been repaid in the early stage, the remaining arrears are more expensive.

Third, what should I pay attention to when repaying the loan in advance?

1. Pay attention to the loan contract.

We all signed corresponding loan contracts when handling the loan procedures, and the loan contracts will also make relevant agreements on early repayment of loans. Most banks require at least one year before they can apply for early repayment, and the amount of each repayment is limited. It is best for buyers to see clearly how the specific time is agreed in the loan contract before prepayment.

2. Pay attention to capital planning

For friends who are suitable for early repayment, don't use all your current funds to repay the loan. At any time, everyone should make a reasonable plan for the funds in their hands, especially to prepare an emergency fund to prevent unexpected situations that have no money to solve.

3. Understand the charging procedures.

Generally, the process of prepayment is that the buyers first apply to the loan bank for approval, and after the approval of the bank, the buyers will be informed of the specific deduction month. Many buyers think that as long as they save enough money on the repayment date of the month notified by the bank. In fact, after prepayment, buyers need to go through the formalities of understanding the mortgage, which many buyers will forget.

What are the advantages and disadvantages of repaying loans in advance?

Repaying the mortgage in advance should be based on your actual situation. The friend who originally wanted to repay the loan in advance was to save the loan interest, but if he was a friend who had already enjoyed the preferential interest rate when handling the loan, the capital utilization cost of this part of the buyers was very low, and the prepayment actually could not achieve the purpose of saving the loan interest for the buyers.

In addition, for friends who choose the repayment method of equal principal when lending, most of the prepayment is interest. If your repayment period has been several years, usually more than five years, most of the later repayment is the principal, and the purpose of saving loan interest can not be achieved by prepayment. From the perspective of capital utilization, it is best for buyers to spend their money in other channels and choose channels with annual returns exceeding the bank mortgage interest rate to obtain higher returns.

How to calculate the interest on prepayment?

According to the calculation formula of general mortgage repayment method, it can be divided into two ways: equal principal and interest and average principal.

Equal principal and interest calculation formula

Calculation principle: from the beginning of monthly contribution, the bank collects the interest of the remaining principal first, and then the principal; The proportion of interest in monthly payment decreases with the decrease of residual principal, and the proportion of principal in monthly payment increases with the increase, but the total monthly payment remains unchanged.

It should be noted that: 1, the maximum amount of urban provident fund loans should be combined with local conditions. 2. For residents who have borrowed money to buy a house but whose per capita area is lower than the local average, and then apply for buying a second set of ordinary self-occupied housing, the preferential policies for buying ordinary self-occupied housing with the first set of loans shall be implemented mutatis mutandis.

Average capital calculation formula

Monthly repayment = monthly principal, monthly principal and interest

Monthly principal = principal/repayment month and several months principal and interest = (principal-total accumulated repayment) x monthly interest rate.

Calculation principle: the amount of principal returned every month is always the same, and the interest will decrease with the decrease of the remaining principal.

Extended data

How to do the most cost-effective mortgage?

1. When choosing a mortgage, you must find the right repayment method. At present, the two most commonly used repayment methods are equal principal and interest repayment method and average capital repayment method, that is, the borrower repays the loan principal and interest with the same amount every month. In this way, the interest expense is the most in the initial repayment period, and the principal is relatively small. In the future, with the gradual reduction of monthly interest expenses, the returned principal will gradually increase.

2. For the repayment of housing loans, you can also choose average capital repayment method, that is, the borrower repays the loan principal with the same amount every month, and the interest decreases with the principal month by month, so does the monthly repayment amount. Under the condition of the same loan time, the interest paid by the equal principal and interest repayment method is higher than that by the average capital repayment method.

3. If we are well-off, we can choose to repay in advance, and average capital repayment method is the best choice. Repaying the loan in advance is mainly to reduce interest, especially in the first few years of the loan, the principal base is large and the interest is correspondingly high. Therefore, financial experts suggest that in the first few years of the loan, especially in the first five years, we must strive for more repayment, so as to reduce the principal base of the total loan and reduce the interest burden in the remaining loans.