How many years is the most cost-effective to pay off the mortgage?
1, this problem cannot be generalized, but should be discussed according to the different income and economic situation of buyers. If the lender's income is stable and relatively high, it is suitable to choose short-term loans. The shorter the time, the less interest. For people whose high income is only for temporary turnover, this can save a lot of mortgage interest. For people with unstable income or low income, it is more cost-effective to lengthen the life span considering their own income problems.
2. You can choose a shorter mortgage term, but the monthly repayment amount will be more, but the interest will be much less. It would be better if personal economic conditions meet the requirements.
3. Choose long-term mortgage, which belongs to some middle-income people. The monthly payment is not much, but the repayment time will be long, resulting in long repayment time and high interest.
4. People who want to pay in advance generally want to liberate their status as house slaves and restore their freedom. If these people apply for repayment in the average capital, the most cost-effective repayment time is between 10 and 20 years. After ten years of repayment, I believe that everyone has paid off a lot of mortgages and accumulated a lot of funds, so it will be much easier to repay the mortgage after 10, and you can get rid of it as soon as possible.
5. If you use the provident fund mortgage loan, you don't have to pay in advance, because the interest rate of provident fund loans is very low, and we can get more profits with the money paid in advance, so bankers will not advise provident fund mortgage borrowers to pay in advance.
What are the ways to repay the mortgage in advance?
1. Settle the principal and interest of the bank loan at one time.
In other words, all the remaining mortgages are paid off in advance at one time. With this prepayment method, the interest calculation is based on the date when you pay off the principal and interest of the bank. However, there is a bit vague here, that is, there is no need to pay interest on the date after settlement. Generally speaking, if you borrow the principal of the bank, you will pay back the interest money in a few days.
2. Only part of the principal and interest of the bank loan will be returned.
To put it bluntly, although you repaid in advance, you only paid off part of the mortgage, not all. In order to settle the principal and interest of bank loans, the loan is repaid in advance, and the loan interest rate agreed in the original loan contract is still implemented. If there is a discount, the discount will continue.