1. Compared with the repayment promised in the original loan contract, early repayment can indeed save some interest expenses. Generally, it is most appropriate to repay the loan three years in advance, and prepayment is also an excellent embodiment of personal credit history. In addition, users can settle all housing loans in advance and solve the pressure of debt work as soon as possible.

2. If the customer chooses to reduce the monthly payment after prepayment and keep the repayment period unchanged, it can also reduce the pressure on monthly payment; If you choose to shorten the repayment period and keep the monthly payment unchanged, you can settle the debt earlier.

Second, owing on the loan in advance, disadvantages: owing on the loan in advance is likely to have contract liquidated damages. If the general borrower repays the housing loan for less than one year, he must pay a certain contract penalty. Therefore, it is best for everyone to ask financial institutions for clear information when repaying in advance. If the user who applies for a housing loan has paid off more than half of the loan period, it is not cost-effective to repay the loan at this time. Since most of the interest expenses have been repaid in the early stage, the remaining arrears are more expensive.

3. What should I pay attention to when repaying the loan in advance?

1. Pay attention to the loan contract.

When we handle the loan procedures, we all signed the corresponding loan contracts, and the loan contracts will also make relevant agreements on repaying the loan in advance. Most banks require repayment for at least one year before they can apply for prepayment, and each repayment has a limit. Property buyers should look at the specific time stipulated in the loan contract before repaying in advance.

2. Pay attention to capital planning.

For friends who are suitable for early repayment, you must not use all your liquidity to repay the loan. At any time, everyone should make a reasonable plan for the funds in their hands, especially to prepare an emergency fund in case of unexpected situations and lack of money to solve them.

3. Go through the formalities of understanding and detention

Generally, the process of prepayment is that buyers first apply to the loan bank for approval. After the approval of the bank, the buyer will be informed of the specific deduction month. Many property buyers think that they only need to save enough money on the repayment date of the month notified by the bank. In fact, after prepayment, buyers still need to go through the formalities of understanding the mortgage, which many buyers will forget.