1, provident fund loan. If the borrower uses provident fund loans to buy a house, there is no need to rush to repay the loan in advance, because after the central bank cut interest rates, the interest rate of provident fund loans has also been lowered, so the loan advantage is more obvious. If the borrower has spare money, it might as well be used for other high-yield investments.

2. The loan period is over half. If the borrower's loan term has exceeded half, then there is no need to repay the loan before the repayment period, because if the loan term exceeds half, the proportion of principal repayment will be greater, and if the loan is repaid in advance, there will be no interest savings.

3. Preferential loan interest rate. If the loan interest rate is low, the repayment pressure of the borrower will be relatively small. If the borrower can enjoy a great discount when applying for a loan, then there is no need to rush to repay the loan in advance.

Therefore, if you belong to the above situation, it is recommended not to repay the mortgage in advance, because it cannot meet the demand of saving the loan cost. # At least the following three situations are not suitable for prepayment:

First of all, for those who enjoy a large discount (generally 8.5% discount) on provident fund loans or loans, so far, the loan interest rate for provident fund loans for more than five years is 3.25%, the benchmark interest rate for commercial loans is 4.9%, and with the discount, the execution interest rate reaches 4. 165%, which can be said to be a very low level. Since we have enjoyed the lower discount rate and are now in the channel of interest rate reduction, it is more cost-effective to do some financial management with idle funds in our hands. For example, if you have idle funds of100000 yuan in your hand, you can get 6000 yuan by the end of the year by investing in a wealth management product with a yearly income of 6%.

Secondly, the repayment of equal principal has exceeded 1/3.

In the average capital, the total amount of loans is evenly distributed to the cost.

Calculate repayment interest according to the remaining principal. In other words, in the later period, the less the remaining principal, the less interest will be generated. If you pay back more than 1/3, it means that you have paid back nearly half of the interest, and more is the later principal. The interest level has little effect on the repayment amount.

Finally, the repayment of equal principal and interest has reached the medium term.

Matching the principal and interest is to add up the total principal and interest of the mortgage loan and then share it equally every month. In other words, the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. By the middle of repayment, most of the interest has been paid off, so it is of little significance to repay the loan in advance. # The following four situations should not be repaid in advance:

The first category: repayment with emergency funds.

For ordinary consumers, housing loans are an important part of daily expenses, and monthly payments often account for 30%-50% of monthly income. In the case of frequent interest rate hikes, the pressure on some "house slaves" began to increase, and they were eager to repay their loans in advance. Although frequent interest rate hikes have accumulated a lot of interest, it is not appropriate for consumers who are short of funds and have limited economic ability to disrupt the original financial planning. At the same time, the use of emergency funds will increase the risk of future life, and it is possible to "lose big because of small".

The second category: equal principal and interest enter the middle period of repayment.

At present, in commercial loans, the most widely used method is equal principal and interest repayment. After entering the middle period of repayment, the monthly payment is mostly the principal, so the significance of early repayment is not great. If consumers don't have sufficient funds, they don't have to rush to repay in advance. Especially in the later period of repayment, there is no need to use centralized funds to repay. This not only disrupts financial planning, but also is not conducive to the effective use of funds.

Category III: The repayment period of equal principal has reached 1/4.

Judging from the current conditions of bank prepayment, the repayment amount is generally required to be an integer multiple of 1 1,000 yuan. The average principal repayment method is that the principal repaid every month is equal, and then the interest is calculated according to the remaining principal, so the initial repayment is more and the pressure is greater. With the continuous reduction of principal, the monthly repayment is also decreasing, making it easier to repay later. Take the loan of 300,000 yuan with a term of 20 years as an example. From the sixth year of the repayment period, that is, the repayment period has reached 1/4. In the composition of monthly payment, the principal begins to exceed the interest. If the loan is repaid in advance at this time, the repayment part is actually more of the principal, so that the effectively saved interest will not be used.

The fourth category: there are better investment and financial management channels.

If the consumer's funds only exist in the bank and will not be used in the near future, the rate of return is the deposit interest rate. In contrast, the loan interest rate is 6.5555%, the one-year deposit interest rate is only 3.87%, and the loan interest rate is significantly higher than the deposit interest rate. In this case, it is more appropriate to use the funds for prepayment. If consumers' funds have better investment and wealth management channels, such as investment funds, foreign exchange and other wealth management products, and their capital operation ability is relatively strong, they can obtain higher rate of return, and the income generated by funds is higher than the interest saved by early repayment, then from the perspective of exerting the effectiveness of liquidity, these consumers do not need to use funds for early repayment.

People who are suitable for repaying loans in advance need to meet the following three conditions:

First of all, people who choose the equal principal and interest repayment method and within 5 years before repaying the loan can repay the loan in advance because they can save a lot of interest. Secondly, I have spare money in my hand, but I have no other investment channels, or the investment yield is less than the loan interest rate. Finally, it is less likely that there will be large expenditures in the near future.

The above contents are for reference only, I hope I can help you. Thank you for your support to Kanfangwang. I wish you a happy purchase!