Personally, I won't prepay.
As a house slave, there are 200,000 mortgages. If you have 0.2 million/200 thousand deposit in your hand, will you repay the mortgage in advance?
China's fine tradition tells us that we should never borrow money from others unless we have to. In the final analysis, the poor see static money, while the rich see flowing time. Simply put, a bank is an institution where the poor serve the rich-the poor try their best to put money in and the rich try their best to lend it out.
Combined with their own situation analysis:
1: There is a difference in interest between provident fund loans and commercial mortgage loans.
Because the mortgage interest rate is the lowest, investment and financial management will outperform the loan.
My personal situation: when buying a house, I choose a portfolio loan, with an annual interest rate of 4.90% for commercial loans and 3.25% for provident fund loans. It will be paid off in 30 years, but at present our small family also has this repayment ability. It is better to choose to take money to manage money than to repay it once.
If it is a provident fund loan, it will be earned. According to the current rising inflation rate, whether to repay the mortgage in advance is already a dispensable multiple-choice question.
2. Different repayment methods will also affect whether to repay in advance.
Is it equal principal repayment or equal principal and interest repayment?
Average capital-if you repay, the principal and interest returned every month are decreasing, and the repayment pressure is getting smaller and smaller. If the repayment period exceeds half, there is no need to pay off in advance.
Matching principal and interest-repayment means that the principal returned every month is increasing and the interest is decreasing. In other words, in the first few years after the loan, most of the repayment is interest. More than half of the term, the rest is mainly the principal, and the interest is almost finished. It is even more uneconomical to repay in advance.
Find out these two points, and then we will consider taking money to do financial management. As long as we beat the bank's annualized interest rate of 4.9% and earn higher interest than the bank, we can not only pay off the mortgage, but also get extra income.
So what is the investment of 200,000 yuan? In order to beat the interest rate of bank loans?
The next step is to choose financial tools and financial products, as long as the annualized interest rate exceeds 5%.
1: First, it is a common fixed-income wealth management product with an annualized rate of return of 5%-6%.
2. Fixed fund investment has always been a wealth management product that many people like. At present, the fund has fixed investment of 65,438+00 years and above, and they have not lost any money, and they are all profitable. If we can stick to the fund's fixed investment for ten years, the income should be good: basically, we can achieve more than 8%.
In addition to financial management, you can also start some practical businesses. Investing and starting a business is risky, or it depends on the individual's risk tolerance.
In another case:
People who can't invest in financial management, since they don't want the money in their pockets to make money, can only put it in the bank to depreciate, so they have to pay it back in advance. If you have more spare money on hand, but only the bank pays interest, you might as well pay the mortgage first.
Repaying the loan in advance is also suitable for investors who buy capital preservation bank wealth management, balance treasure and other income lower than mortgage interest.
In the initial stage of the loan, whether it is equal principal and interest or average capital, the earlier the repayment, the more cost-effective. Because paying more in the early stage means that the principal borrowed from the bank will be reduced, and a lot of interest can be saved in the later stage.
Whether to repay the loan in advance depends on your mentality. If you want to be light and have no debt, you can pay it back in advance. If you are a financial expert, you can still try to slow down and spend money on products with higher interest rates.