First of all, I think the advantages of repaying the mortgage in advance outweigh the disadvantages. If you buy a house with a commercial loan, the current annual interest rate of the commercial housing loan exceeds 4% to 5%. Suppose you are an investor, you don't have a good investment project at present, or the income of the investment project is lower than the interest rate of the mortgage loan, then you should repay the mortgage loan. Suppose you are an ordinary office worker or unemployed person, you are afraid of risks, don't invest, and usually deposit all the remaining funds in the bank to earn interest, then you should repay the loan.
Second, those who think that the disadvantages of repaying the mortgage in advance outweigh the advantages also advocate that the mortgage should not be repaid in advance. First of all, if you buy a house with a housing provident fund loan, the current housing provident fund loan interest rate is 3.25%. Whether you are an investor or an ordinary office worker, you are not advised to repay. The main reason is that the interest rate is too low and there is no need to repay. All you have to do is deposit your money in Yu 'ebao and Tenpay, which have this interest rate income. Moreover, the monthly mortgage is deducted from your housing provident fund, so how much salary you should pay will not affect your paid salary and living standard at all. Assuming that you repay the loan in advance, it is not easy to raise the housing provident fund that you have paid and will pay in the future, especially in third-and fourth-tier cities. If it is not because of the mortgage repayment, it is difficult to raise housing provident fund. Second, if you use a commercial loan to buy a house, and the investment project you are optimistic about is higher than the loan interest rate, then I suggest that you don't repay the loan, but use it for projects with higher return on investment.
In addition, if the repayment period of commercial loans has exceeded 1/3 or even 1/2, it is not recommended to repay in advance. Because according to this repayment method, it means that more than half or even nearly 80% of the loan interest has been repaid in the early repayment process, and most of the rest is the mortgage principal. At this time, the amount of prepayment is close to the loan amount, and the significance of prepayment is not great. If the mortgage loan is repaid in advance, it depends on the loan contract with the bank. Pay attention to whether it is necessary to pay liquidated damages for repaying loans in advance.
Of course, whether it is good or bad to repay the mortgage in advance is also influenced by many factors. Personally, as long as you have money to repay the loan, it is a good thing, which means that you have a lot of money and a choice. At present, most ordinary people have no choice, because without such a large sum of money, they can only choose to repay their mortgages on schedule every month.
Many people have answered this question. Although I didn't catch up early, I still want to say a few words about my own process and my views on mortgage repayment.
Housing loan is a repayment process made by the bank. For example, if you borrow 200,000 yuan, you will pay 2,000 yuan every month, with a term of 65,438+00 years. When the buyer repays 2,000 yuan per month in the first year, the interest paid to the bank is 1 0.3 million yuan, while 700 yuan only deducts it from the loan of110,000 yuan. In other words, most of the 2,000 yuan returned by the buyer pays interest, and only a small part of the real repayment should be less than 40%. In the second year, of the 2,000 yuan of monthly loan repayment, the interest is 1 100 yuan, and the actual deduction of the lender's loan is 900 yuan. In the third year, the interest of 2000 yuan repaid by the borrower is 900 yuan, and the loan amount deducted is 1 100 yuan. The fourth year, the fifth year and so on. In the sixth and seventh years, the monthly interest payment of 2,000 yuan is very small, generally exceeding 1 1,000 yuan per month, and the remaining 1 is regarded as the lender's loan by 800 yuan until the loan is paid off.
To sum up, the repayment amount mentioned above is only a metaphor and not accurate. ) We can see that in the first few years of repayment of the loan, most of the lender's funds paid interest, and the real repayment of funds was very small. Therefore, it is unwise for the lender to pay off the loan in advance four or five years after the loan. We can make an analogy. For example, the lender will pay off the loan within the loan period of 10, and it will repay a total of 280,000 yuan. However, if the lender wants to repay the loan in advance within five years, it will also repay a total of about 280 thousand yuan. After calculating an account, there is basically no benefit or advantage for the lender to repay the loan in advance.
Therefore, lenders are advised not to prepay. If the loan must be repaid in advance, the author also suggests that the lender complete it in the last two or three years. If you repay the loan in advance in the first four years, it will be very ineffective for the lender, because although you have repaid a lot of money, you have only deducted a small amount of money from the lender's loan, and the lender has to repay more loans. Among them, there is the routine of banks. Remember what people eat!
If there are any mistakes in the above humble opinions, please criticize and correct them.
Whether to repay the mortgage in advance depends on your own situation. The following analysis is for reference only:
1, according to the current benchmark interest rate, 30 years of loan interest can buy another house with the same price and area. Therefore, the biggest beneficiary is the bank.
2. Average capital: During the repayment period, the average capital divides the total loan into equal parts, and repays the same amount of principal and the interest generated by the remaining loans in that month every month. Features: The total interest is less than the equal principal and interest, and the lower the monthly interest, the greater the repayment pressure at the beginning, which is not conducive to early repayment, because the less the remaining principal, the less the natural interest.
3. Matching principal and interest: add up the principal and total interest of the mortgage loan, and then share it equally every month during the repayment period. Features: the total interest is more than the average capital, and the monthly repayment is the same. However, the proportion of principal in monthly repayment is increasing month by month, and the proportion of interest is decreasing month by month, which is unfavorable for early repayment, because more principal is left and less interest is left.
4. Based on the above analysis, no matter which way, the bank has recovered most of the interest at first, and the interest income of the bank will not be affected by the late prepayment, and the bank is always the winner. Instead of repaying in advance, it is better to buy money into bank financing, which can not only earn interest, but also take it out when needed.
This is a very good question. He asked the voices of hundreds of millions of house slaves across the country. Hundreds of millions of house slaves across the country will encounter this problem. I have spare money. Should I repay the mortgage in advance? Although I can't pay off all the mortgages, I can pay off some of them in advance. Should I?
Judging from this score, my suggestion should not be retired early.
If you have rich investment experience, the income of your spare money investment can exceed the interest of mortgage loan. In this case, you don't have to think about it, and you don't have to repay the mortgage in advance. The interest on mortgage loans is so low that it is difficult to lend them out. Why do you want to pay back the money?
The return on idle money investment is very low, and it can't outrun the mortgage interest at all. Do we need to prepay in this case? This can be divided into several situations. If your mortgage has been repaid for many years and the interest is similar, it will definitely not be used in this case. If your 30-year mortgage has been repaid for 5 years or more, please don't repay it.
On the contrary, if your mortgage is only a few years old and your investment experience is not rich, and you can't make the investment income of spare money exceed the mortgage interest, then you can repay it in advance, but don't return all the spare money, because now is the era when cash is king, and you must keep some cash for a rainy day.
Is the advantage of repaying the mortgage in advance greater than the disadvantage or the disadvantage greater than the advantage?
Before answering this question, I want to refute the main question. Have ordinary residents "won" in the interest game with banks? Have you ever been interested?
Obviously, in the interest game between ordinary customers and banks, it is always ordinary customers who lose interests, such as deposits and loans.
It is precisely because of this that if the mortgage is repaid in advance, it will definitely suffer, and the mortgage has been repaid for three to five years, which is the biggest loss. The reason is that in previous years, 70% of the repayment was interest, not principal. The principal was repaid in a small amount. Then, the money already paid is equal to usury. Therefore, whenever possible, never repay the loan in advance, but when it is due. Because, the farther you go, the lower the interest on the loan, and the interest on buying a large deposit certificate will be higher than the interest on the loan.
As a bank loan officer, I am also a mortgage lender, so I come to answer your question uninvited.
First of all, you can make it clear that the game of advantages and disadvantages is mainly related to your mortgage interest rate, investment philosophy and self-owned deposits:
1. If you have a large amount of self-savings, and your investment is cautious and conservative, and the mortgage interest rate is relatively high, you may be advised to repay the loan in advance to reduce the expenditure of loan interest.
2. If you have more deposits, but prefer to invest, and the interest rate of investment income is higher than the interest rate of your mortgage, it is not recommended to repay the bank loan in advance. You can get higher returns with the returned money, which is equivalent to obtaining a low-interest financing loan from the bank for investment, which is the opportunity cost.
3. If the funds for your loan repayment basically come from salary income and the mortgage interest rate is low, it is not recommended to repay the loan in advance. If you repay the loan in advance, the quality of life will be greatly reduced.
The loan interest rate can be compared with the bank's guaranteed financial interest rate for the same period: if the loan interest rate is higher than the financial interest rate, it is recommended to return the loan in advance; If the loan interest rate is lower than the financial interest rate, it is not recommended to repay the loan in advance.
At present, the mortgage interest rate I get from the bank is 5.05%, which is higher than the one-year financing interest rate of many banks at present, and it belongs to a cautious investment type. If I have extra money, I will still choose to pay in advance.
In a word, you can decide whether you need to prepay according to your own situation, combining all aspects and considering the advantages and disadvantages. Many things have no absolute advantages and disadvantages. Times are changing and policies are changing from time to time.
I hope my humble opinion can help you and wish you a happy life!
Repaying the mortgage in advance has advantages and disadvantages, and it cannot be generalized. It should be divided into several situations:
In the first case, you have sufficient funds and can't find a good investment project that suits you at the moment. It is beneficial to repay the mortgage in advance. Because the interest rate of mortgage, even provident fund mortgage, is relatively high, higher than the deposit interest rate, even if the wealth management funds rarely reach the mortgage interest rate, so high-cost funds should be returned.
In the second case, you have funds, but in order to keep enough cash flow, or invest in some cases (for example, copying stocks, of course, you should be cautious in stock trading or prepare to invest in industry). If it happens to be the money you can repay the loan, it is recommended not to return it. As the saying goes, if you have food in your hand, don't panic. You'd better keep enough money in your hand. Moreover, it is not easy to borrow money if there is a real need. Even if the bank agrees to lend, it will not only take time, but also the cost of capital will be much higher than the mortgage interest rate. The cost of mortgage capital is almost the lowest among all borrowing capital costs. Needless to say, the funds for stock trading are generally not borrowed from banks (the premise of stock trading is that you are an expert in stock trading).
In the third case, regarding the interest rate, if your interest rate is lower than the current lrp, it is certainly not recommended to repay.
To sum up, generally speaking, I don't recommend prepayment. Judging from your situation, since you have raised this question, there must be funds for repayment. Even in this case, I don't recommend repayment for the above reasons. In the long run, interest rates will fall, people's living standards will improve, income will increase, and your repayment ability will get better and better. Wouldn't it be better to use bank funds to develop yourself when you are relatively poor and get financial freedom as soon as possible?
Repaying the mortgage in advance, the advantages outweigh the disadvantages or the disadvantages outweigh the advantages. I think we should actually analyze the actual situation, and I personally suggest not to prepay. Mainly from the following aspects:
1, prepayment is often based on the idea of less interest, but some mortgage loans were repaid with interest several years ago, so the amount of prepayment and repayment on schedule is the same, so there is no difference in this respect.
As we all know, there is inflation in economic development, that is, what we call money is becoming less and less valuable. In fact, if you calculate, the interest saved by prepayment may not exceed the rate at which inflation devalues the currency.
3. Whether it is mortgage, car loan or credit card, it is a contract signed with the bank. Your prepayment is actually a breach of contract. People who have a deep understanding of credit cards will know that prepayment with credit cards will not only have no advantages but also disadvantages, which will affect your credit card withdrawal. Therefore, we must be cautious, so as not to eat chicken without food, leaving an inconvenient foreshadowing for future loans. .
To sum up the three points, prepayment is not recommended. Of course, in fact, it is necessary to analyze the specific situation and think clearly according to the actual situation.
Whether to repay the mortgage in advance depends mainly on your financial situation and the rate of return on investment and financial management. If your return on investment and financial management is much higher than your return on mortgage, then you don't have to repay your mortgage in advance. However, if your return on investment is relatively low, you can also pay off your mortgage, which can save interest expenses and be light without debt, which is also a good thing.
If you are in business, and the yield of your business is much higher than the mortgage interest rate, then you certainly don't need to repay the mortgage. At present, the mortgage interest rate is relatively low, generally around 5.88%, and the loan period is still very long, up to 30 years. In this case, it can be said that many business people especially like to buy a house with a mortgage and then do business with their own money.
Generally speaking, the return on investment in doing business will be around 20%, and if it is done well, it can even reach 50% or even higher. In this case, you can see that your rate of return is much higher than the mortgage interest rate, so it must be very beneficial for you not to repay the mortgage in advance.
Therefore, if your return on investment is high, you don't have to repay the mortgage in advance.
If you only manage money, and the financial yield is lower than the bank mortgage interest rate, then repaying the loan in advance is also a good choice for you. At present, the yield of generally safe wealth management products is around 5%, while the mortgage interest rate is generally around 5.88%.
From this perspective, the generally safe annualized financial yield will be lower than the mortgage interest rate. Therefore, in this case, if you have the money to repay the bank loan in advance, it is a better choice, which can save you a lot of interest expenses. Moreover, paying off the loan in advance can also make you debt-free, even if you encounter anything, you don't have to worry about repaying the mortgage.
Therefore, if your financial return rate is relatively low, it is also a good choice to repay the mortgage in advance, which can make you debt-free.
To sum up, if the yield of investment and financial management is much higher than that of mortgage, then there is no need to repay the mortgage in advance. However, if your return on investment is relatively poor, then you can also pay off the mortgage, which can pay less interest, and debt-free is also a good thing.
Hello, I'm glad to answer your question. Do you mean to pay off the loan in advance? This depends on the specific situation.
Under normal circumstances, it is not recommended that you repay in advance. Especially the one with a loan term of 30 years, because of inflation now, that is to say, the purchasing power of the same amount of money will decline in the next two or three decades. For example, the purchasing power of 100 today may only be equivalent to 10 yuan in 20 years. Although the bank has interest, your interest is much smaller than inflation. You can use the borrowed money to invest in other projects in exchange for more income. This is why many large enterprises have to borrow money from banks.
Under special circumstances, it is recommended to repay the loan in advance.
For example, you are the first suite now, and you bought the house by loan, but the loan amount was not much before. For example, you only borrowed 65,438+more than 10,000 yuan. Now you need to buy a second suite. In this case, I suggest that you pay off the loan in advance. This has several advantages. First of all, in some places, the real estate policy does not recognize loans, which means that you pay off the loan for the first suite, and then buy a house as the first suite. If it is not paid off, it will be the second suite, with a high ratio of interest and down payment.
In the second special case, you also want to buy a second suite. There were not many loans for the first home before, but what if the down payment was not enough? Teach a method. You can pay off the loan of the first suite and then take out a mortgage, so that you can get more loans as the down payment for buying the second suite. Some people say that I can go to two mortgage without paying off the first suite. Yes, some people can. Some places are not allowed, such as my city. You must pay off the loan before you can mortgage it. On the other hand, in two mortgage, compared with a mortgage loan, the loan interest is higher and the loan ratio is much lower. Therefore, it is recommended to pay off the loan before mortgage.