Faced with a large amount of loan interest, many people who buy a house want to repay the loan in advance and get rid of the fate of house slaves. These problems have become the focus of people's attention.
Is there "the best time to repay the loan in advance"?
In fact, whether using provident fund loans or commercial loans, the repayment method is average capital or equal principal and interest. There is no "best time to repay the mortgage in advance", which is completely a false proposition.
We pay the mortgage on a monthly basis, and the interest of the bank is also calculated accurately on a monthly basis.
Three prepayment methods
Suppose that the provident fund is used for the house purchase loan of 6,543,800 yuan, and the repayment method is equal, and the mortgage will be paid off in 30 years. Now the annual interest rate of provident fund loans is 3.25%. Let's look at the principal to be repaid every month. If the average capital is chosen as the repayment method, the principal of 654.38+00,000 will be divided into 360 months (30× 654.38+02) on average, so the principal will be repaid at a fixed rate of 2777.78 yuan per month, which is a fixed figure. We don't have to worry about it, just look at the interest to be repaid every month. The monthly interest rate is the annual interest rate divided by 12. Take the annual interest rate of provident fund as an example: if the loan is 1 10,000, the interest you need to pay back to the bank in the first month is 1 10,000× 0.270833% = 2708.33 yuan.
Although our example is about equal principal repayment, regardless of the average capital or equal principal and interest, under the condition of fixed monthly interest, you owe the bank 6,543.8+0 million in the first month, so the interest paid in the first month is 2,708.33 yuan. It should be pointed out that the interest will be less than the equal principal and interest from the second month, just because the equal amount of King Kong will pay more principal every month.
As the principal of 2777.78 yuan was repaid in the first month, at this time, * * still owes the bank 1 10,000-2777.78 = 997,222.22 yuan. So the interest of the second month is: 997222.22× 0.270833% = 2700438+0 yuan. If you don't want to be too lazy to calculate, you can directly use the mortgage calculator to calculate how much interest you want to pay back every month.
Because the average capital is selected, the total loan owed to the bank in the last month is 2777.78 yuan, so the interest is 2777.78 yuan * 0.270833% = 7.52 yuan.
Conclusion: There is no "more value" in prepayment at a certain point.
The longer the loan term, the more the total interest?
Through the above specific data, we will find that in the process of repaying the mortgage, you can't be greedy for a penny from the bank, and the bank can't be greedy for you. How much principal and interest is repaid every month and how much principal and interest is left is calculated according to the fixed annualized mortgage interest rate, and no one can take advantage of anyone.
Specifically, during the loan period you originally signed (assuming that the loan lasts for 30 years), did you repay the loan for 5 years, 10 years, 15 years, 20 years, etc. You will repay the loan in advance at these different time points, that is, you will pay off the remaining principal at one time, and you will always have to pay back how much you borrowed from the bank.
In terms of interest, the longer the loan is taken out, the more interest will be paid back. There is no doubt about it. If you don't want to bear too much interest, you should pay off the mortgage in advance, but it will never be said that paying off all the mortgages in the seventh year will be a loss or more cost-effective than paying off all the mortgages in the eighth year.
About repaying the loan in advance, the key depends on when you want to repay it in advance or whether you want to repay it in advance. Everyone is different in this respect, because everyone's ability to bear interest and demand for cash flow are different, so there is no so-called "the best time to repay the loan in advance" for everyone.
In other words, no matter when you repay the loan, the interest you pay to the bank is calculated in strict accordance with the agreed interest rate when the annual interest rate of the mortgage is fixed. No matter when you pay it back, the cost you pay is calculated according to the annualized interest rate of the provident fund loan of 3.25%, and the same is true for the business loan.
About provident fund loans
Compared with commercial loans, the interest rate of provident fund loans is lower. Calculate an account: Take a 400,000 house as an example. According to 70% of the loan amount, the loan can reach 280,000. If the term of the commercial loan is 25 years, the average monthly repayment is 1 620.58 yuan, and the total repayment in 25 years is 486 1.74 yuan, and the total interest paid is as high as 206 1.74 yuan. It is also a provident fund loan with a term of 25 years, with a monthly repayment of 1 364.49 yuan, a total repayment of 409,345 yuan in 25 years, and a total interest payment of 1 293.45 yuan. Compared with commercial loans, the interest expense saved in 25 years is nearly 76,829 yuan.
Housing accumulation fund is equivalent to an extra deposit. Housing provident fund is paid by both enterprises and employees, and enterprises will subsidize the same amount of money according to the proportion of employees paying housing provident fund. In the loan to buy a house and the use related to the house, it is completely owned by the employees, which is equivalent to the deposit in the bank. Take Beijing as an example. If your monthly salary is 6,000 yuan, and you pay 5%, that is, 300 yuan/month, the company will pay 300 yuan for you accordingly, which is equivalent to an extra deposit in 600 yuan, which is quite cost-effective.
Is it cost-effective to pay off the provident fund loan in advance?
1. It is not easy to successfully apply for provident fund loans. At present, many banks have to queue up for provident fund loans for more than half a year. After you pay off the provident fund loan, if you want to buy another house, it will be difficult to get a successful loan.
2. If you use the spare money on hand to repay the provident fund loan, when you encounter other emergencies that need money urgently, such as children going to school, parents getting sick, buying a car and other smart applications for commercial loans, the interest rate will be greatly increased and you will pay more interest.
3. If you use spare money to buy short-term wealth management products or find a good project to invest, the income will exceed the interest on repayment of public loans, and there may be additional income.
4.
Considering inflation, money now is always more valuable than money in the future. The inflation rate in China has been above the bank interest rate, which means that your repayment amount has been depreciating, which is a good deal for you.
5. The most important point is that the provident fund mortgage loan is the repayment of equal principal and interest, and the proportion of principal in the monthly repayment amount increases month by month, while the proportion of interest decreases month by month. The bank will not remind you of this when you apply for a loan.
Do you choose to repay the loan in advance?
Five suggestions
Anyone who wants to repay the mortgage in advance can, but there is no so-called "best time"
Some people, as long as the bank has a loan, feel that they are in debt and feel uncomfortable. They want to pay in advance, so that they can pay back and solve their discomfort.
Many people may have to buy a second house after a few years of repayment, and they need to pay off the loan first, or pay off the house first and then take out more money for mortgage. In this case, you have to pay in advance, but the time should also be determined according to your own situation.
If you want to repay in advance, you only need to consider one thing, that is, banks may impose penalty interest on premature repayment, and the regulations of different banks in different regions are different. You can check the details of the contract signed at that time.
Compared with the annualized interest rate brought by many wealth management products, the annualized interest rate of bank mortgage is really low, which is a very low cost. In the absence of the above-mentioned need for early repayment, if there is any skill in "repaying the mortgage in advance", it is that the later the better. If the mortgage interest rate drops, it will be more valuable, and the later the better.
(The above answers were published on 20 16-08-09. Please refer to the actual situation for the current purchase policy. )
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