First, is it cost-effective to repay the loan in advance?

If you want to sell the house you bought with the loan, you need to pay off the outstanding loan, that is, repay the loan in advance. It is not cost-effective to repay the loan in advance depending on the repayment method you choose. If you choose equal repayment of principal and interest, then you have paid off more than 50% of the loan, and only a small part of the loan has not been settled, which is not cost-effective, because this repayment method will pay off most of the interest required for the previous loan, and most of the rest is the principal.

And if you choose the average capital to repay the loan, the principal in the monthly repayment is the same, and its interest will decrease with the decrease of the principal. Whether the loan is repaid in advance or not, the impact is not great, and it is more cost-effective.

Second, is it necessary to repay the loan in advance?

Generally, the term of housing loans is twenty or thirty years, and the time is relatively long. If the loan is settled in advance, it needs to be reapplied, and the interest rate will be higher, because the loan interest rate for buying a second house is 1. 1 times the benchmark interest rate. If there are enough idle funds on hand, it is unnecessary to repay the loan in advance. It is better to buy bank wealth management products. Moreover, early repayment needs to pay a certain percentage of liquidated damages, which is higher than one year's loan interest, and it is even more uneconomical to repay the loan in advance.

Of course, if you want to sell a house, you need to settle the loan of the house first, whether it is worth it or not, so that you can get the real estate license and transfer it to the buyers. For those who have a bad memory and a weak sense of repayment, there are often some overdue repayment phenomena, which have a great impact on personal credit information. Even if you travel by plane or high-speed rail, you need to choose to repay the loan in advance.

Editor's summary: The above is an introduction about whether it is cost-effective to repay the loan in advance. Generally speaking, it depends on the repayment method. Of course, if the loan demand is not settled in advance, it is still not recommended to repay the loan in advance. I hope what Bian Xiao shared can give you some reference.

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