According to popular parlance, it is generally considered that it is most cost-effective to repay the principal and interest in advance within the loan term of13, that is, if the user applies for a loan term of 30 years, it is best to pay it off within the first 10 year; If it is a 20-year loan term, it will be paid off within the first 7 years, and the sooner the better.

Extended data:

Is it cost-effective to repay the mortgage principal and interest in advance?

1. Equal principal and interest repayment method: the sum of the principal and interest of the loan repaid each month is fixed, and the monthly repayment pressure is balanced, but the principal and interest repaid each month change-the loan repays more interest in the early stage, less principal, and more principal and less interest in the later stage. If the loan is paid off in advance, the one-time repayment amount is the remaining principal and the outstanding interest as of the date of paying off the loan. The amount of interest saved by early repayment is related to the time to pay off the loan in advance. The sooner you repay the loan in advance, the more interest you will save.

2. People who are suitable for repaying loans in advance need to meet the following three conditions: First, choose the equal principal and interest repayment method, and within five years before repaying loans, such people can repay loans in advance because they can save a lot of interest. Secondly, I have spare money in my hand, but I have no other way, or it is lower than the loan interest rate. After that, it is unlikely that there will be any big expenditure in the near future.