However, different prepayment methods have different requirements for the balance of the provident fund account.
1. Partial advance payment:
The lender needs to repay more than 1 year, and the balance of the provident fund account is more than 30,000 yuan. Then you can withdraw the balance of the one-time provident fund account every year to repay the loan, that is, the repayment is hedged with the provident fund every year. After partial repayment in advance, the principal of the provident fund loan will be reduced and the bank will re-sign the contract with the lender.
On the premise that the lender does not propose to shorten the loan term, the bank will recalculate the lender's monthly payment, which will reduce the lender's repayment pressure, but the total interest will not decrease; Of course, lenders can also shorten the loan period, which can reduce interest, but the repayment pressure will increase, which requires everyone to choose according to their own needs.
2. Pay off in advance at one time:
Similarly, if the lender needs to repay more than 1 year, it can withdraw all the balance of the provident fund loan and deduct the remaining principal and interest of the provident fund loan at one time. If the balance of the provident fund loan is insufficient, it can also be repaid in advance, which requires the lender to make up the insufficient part in the repayment account.
It should be noted that in the above two prepayment methods, if the lender has a primary lender and a secondary lender, the balance of the provident fund account in the name of the primary lender will be deducted first, and the insufficient part will be deducted from the balance of the secondary lender's provident fund account.
: Is it cost-effective for the provident fund to repay the loan in advance?
It is not cost-effective for the provident fund to repay the loan in advance, which needs to be analyzed according to the comprehensive situation, and can be referenced from the following four aspects:
1. Is the repayment method correct?
If you apply for portfolio loans, the order of early repayment is particular, and the interest rate of provident fund loans is lower than that of commercial loans in the same period. Therefore, you should choose to repay the commercial loan first, and then repay the provident fund loan in advance. According to the relevant provisions of the provident fund loan contract, during the normal repayment period of the provident fund loan, the borrower may repay in part or in one lump sum in advance after the normal repayment with the consent of all parties to the loan contract.
2. Don't pay in advance one year before buying a house.
According to the relevant provisions of provident fund loans, the repayment amount should be in advance after 1 year repayment, and the repayment amount should exceed the repayment amount of 6 months. Another point is that the loan contract stipulates that those who repay the loan in advance shall not be overdue. If it is overdue, you should pay off the arrears first and then apply for early repayment.
3. Don't blindly prepay.
The interest rate of housing loan is adjusted once a year, that is to say, even if the interest rate is adjusted recently, the new interest rate for personal mortgage will be implemented from 65438+ 1 next year. Repaying the loan in advance means that we must give up part of the working capital and bear greater financial pressure at the same time. Whether the borrower has better investment channels. It is better to find a good investment channel to "Qian Shengqian" than to go to the bank for repayment.
4. Consider the loss of time value.
You know that money has time value. For example, someone borrowed 654.38+00000 yuan from you, and the 654.38+00000 yuan that may be paid back after half a year is actually only worth more than 9000 yuan. Therefore, when prices rise, people who originally planned to pay off the house price in one lump sum can go to the bank for loans, while those who have already borrowed to buy a house generally do not need to pay off in advance.