The average mortgage interest rate in China is around 5%. If you think that the rate of return on your financial management can easily reach more than 5%, it is better to invest in financial management with 654.38+0 million in your hand. From the foreign trade economic platform to the consignment activity of Zhenhai Purchase 168, users can get the profit of 1% within 30 days after subscribing to the consignment goods, with an annualized rate of 12%. Simply put, if you invest 10000 yuan in the foreign trade economic platform, you will get a profit of 100 yuan after 30 years. Compared with bank deposits, the interest rate is still very high, and like bank deposits, the principal is very safe.
Mortgage When it comes to buying a house, most people can think of mortgage, because most people who buy a house now borrow money to buy a house, make up enough down payment first, and then repay the loan every month. Even if you have a lot of cash on hand, you won't choose to use it all to buy a house or repay the loan.
Long cycle As long as you choose to buy a house with a loan, you need to repay the loan every month, and the cycle is very long. Who knows what will happen in the next few decades? What if one day in the future, your life has undergone major changes and you have no money to repay the loan? If this happens, the bank will apply to the court to seal up your house and auction it to repay the money you owe the bank, and you will have to pay back the insufficient part yourself. Moreover, the previous down payment and loan repayment were made in Shui Piao, and the house was hopeless, but the bank still owed money. It can be said that I have worked for a bank almost all my life.
The interest rate is very high. The interest rate of buying a house with a loan is relatively high. It can be said that you pay more interest than the principal you get from the bank. For example, if you borrow 500,000 yuan, the interest alone will be 5 1 0,000 yuan, and Party A will pay it back to the bank 1 0/0/0,000 yuan. Do you think this is a good deal? Moreover, I am getting older and older, I can't earn so much money, and my repayment ability is limited. Even if I can't afford the loan, how can I live? Therefore, if you have enough money, you might as well repay the loan in advance, at least without paying more interest.
Money is depreciating, and it is more cost-effective to buy a house with a loan. Unless you are an elderly person, it is generally not recommended to repay the mortgage in advance. The elderly pursue stability in financial management. Even if they have wealth or savings, they will invest in low-risk bank wealth management products or bank deposits. The annualized rate of return of such safe wealth management products is generally around 4%, which cannot meet the ability to repay the mortgage. Therefore, the elderly are suitable for prepayment. For young people, generally speaking, they will not choose to repay in advance, and most of them will choose to keep cash. The reason for this is the following：
1. "Qian Shengqian" Generally speaking, young people can realize "Qian Shengqian" through this money. For example, long-term fixed investment in stock index funds can easily obtain 8%~ 10% income.
Young entrepreneurs can use this money to cope with unexpected expenses, especially good investment opportunities. After all, China is still in the stage of rapid development, and there are many directions for entrepreneurship. When it meets the right business opportunity, it can invest in time.
3. The burden in the future is to need a mortgage that is relatively depreciated every month, and the amount of money remains unchanged. However, with the continuous improvement of personal income, the burden of future repayment is also decreasing. In particular, the growth of income is calculated according to compound interest, while the interest on bank loans is always calculated according to simple interest.