2. If equal principal and interest repayment is chosen, it is more economical in the first 1/2 stage of repayment period, because repayment beyond 1/2 stage will lead to more and more principal and less interest, which will become more and more uneconomical in the future.
Who is not suitable for prepayment?
1, and the repayment period of equal principal has reached 1/4.
Not everyone is suitable for prepayment. If you choose a borrower with average capital, this situation is not suitable for early repayment when the repayment period has reached 65,438+0/4. The repayment pressure of average capital repayment method is relatively large at the initial stage of repayment, but with the passage of time, the principal is decreasing and the monthly payment is also decreasing, so the repayment method in the average capital will be easier in the later stage, so it is not suitable for early repayment at this time.
2. People with equal principal and interest enter the interim repayment period.
If the borrower chooses the repayment method of equal principal and interest at the time of loan, when the repayment of equal principal and interest enters the middle period of repayment, most of the monthly repayment of the borrower is the principal, and the significance of early repayment is not great. If the borrower's funds are not particularly abundant at this time, don't rush to repay in advance, especially in the later period of repayment. Choosing early repayment at this time not only disrupts the financial planning, but also is not conducive to the effective use of funds.
3, provident fund loans or loans to enjoy greater concessions.
When buying a house, the interest paid by the provident fund loan is relatively low, so if the borrower uses the provident fund loan to buy a house, there is no need to rush to repay in advance. If the borrower of a commercial loan enjoys preferential interest rate when handling the loan, there is no need to rush to repay in advance. Because he has enjoyed a lower discount rate, it is more cost-effective to do some other financial management with his idle funds.
What should I pay attention to in prepayment?
1. Know your current repayment situation clearly.
If property buyers have plans to prepay, they need to know whether they are suitable for prepayment. For example, the above situation is not suitable for early repayment, especially for friends who enjoy preferential interest rates and provident fund purchase policies. It is not cost-effective to repay in advance.
2. Is there a better financial channel?
Before prepayment, buyers need to know whether they have better investment and financial management channels, because among all kinds of bank loans, house purchase loans can be regarded as loans with quite low interest rates, and borrowers' idle funds can also be used for financial management. Choosing to use idle funds for financial management may be more profitable than the interest saved by repaying the loan in advance.
3. Pay attention to bank regulations
When handling early repayment, buyers should pay attention to the bank's regulations. Many banks have the requirement of prepayment. Some banks even require everyone to repay at least one year before they can apply for early repayment, but some banks say they can apply for early repayment at any time.