The monthly payment is unchanged, and it is cost-effective to reduce the number of years. The most important way to save interest is to pay it off in one lump sum, but this way is obviously not affordable for every lender. If the customer can only partially repay the loan in advance, the difference will be great. If the monthly payment is reduced, it may only be two or three hundred yuan less each month. However, if the monthly payment remains unchanged and the repayment period is reduced, the total interest may be saved by more than100000 yuan. Therefore, in comparison, bank mortgage lenders still advise customers to adopt the method of "constant monthly supply and annual reduction".

What kind of person is not cost-effective to repay the loan in advance?

1 and 1998 customers who applied for mortgage before the end. According to relevant persons of China Everbright Bank, the customers who applied for mortgage before the end of 1998 were quite special, and their repayment method at that time was equal principal and interest repayment. In other words, the full interest of the loan will be spread to every month, and part of the interest in front will actually be spread to the back, so if the customer needs to repay in advance, he must make up this spread. Repay the loan in advance 1 00000, and the interest difference1000. In this regard, bankers advise such customers not to choose to repay the loan in advance.

2. Customers whose monthly payments are the same and whose loans are about to expire. For citizens who have chosen the equal principal and interest repayment method, it is not necessarily cost-effective to repay the loan in advance if a large part of the loan has been repaid now. According to experts from China Everbright Bank, at present, there are two main repayment methods for citizens to buy a house with loans, namely, the average principal repayment method (decreasing method) and the equal principal and interest repayment method. The vast majority of citizens choose the equal principal and interest method. The monthly repayment amount of the equal principal and interest method is fixed, but most of the repayment is to pay interest at the beginning and principal at the later stage. For example, the loan has been repaid ten years later 1989, which is basically the principal, which is equivalent to a low-interest or even interest-free loan. There is no point in repaying the loan in advance. The diminishing method means that the income will be paid with the capital, and the customer can save the corresponding interest for himself at any time.

3. For customers whose loan term is less than one year, if almost all banks repay the loan in advance within one year, they will have to pay a certain penalty, some of which will reach 1% of the total loan amount, so it is not very cost-effective to pay the money for nothing.