Usually, it takes a certain amount of liquidated damages to repay the mortgage in advance. Moreover, the closer the prepayment time is to the loan issuance date, the higher the liquidated damages. However, after the normal repayment in 1 year, the liquidated damages for early repayment will not be charged.
In the first 1/3 years of the whole loan term, the interest paid accounts for about 50% of the whole interest. In the last 2/3 years of the loan term, the interest paid also accounts for about 50% of the whole interest. Therefore, if you want to save more interest, you'd better repay in advance within the first 1/3 years.
Generally speaking, prepayment is the best choice for average capital without penalty, and the prepayment time should not exceed 65,438+0/3 years of the loan term.
Here are some concrete examples:
If the mortgage is for 30 years, it is best to repay in advance 1- 10 years before the loan.
If the mortgage is for 25 years, it is optimal to repay in advance 1-8 years before the loan.
If the mortgage is for 20 years, it is optimal to repay in advance 1-6 years before the loan.
If the mortgage is in 15 years, it is optimal to prepay in 1-5 years before the loan.
If the mortgage is 10 year, it is optimal to prepay in the first 1-3 years of the loan.
Take the mortgage loan of 10 as an example, assuming that the loan principal is 200,000 and the annual interest rate is 4.9%. therefore
The average total interest of 10 is 49,408.33 yuan.
1 year, the total interest of normal loan repayment is 9350.84 yuan. If you repay in advance during this period, you may need to pay a certain penalty.
The total interest of normal loan repayment in two years is 9350.84+8370.83 =17721.67 yuan. At this time, prepayment can also save about 3 1, 686.66 yuan of interest, and there is no need to pay prepayment penalty.
The total interest of normal repayment for three years is 9350.84+8370.83+7391.03 = 25112.7 yuan. This already accounts for half of the total interest of 10. At this time, prepayment can also save nearly half of the interest.
However, if we continue to push back, the interest saved by early repayment will be less and less, so there is no need to repay in advance. Therefore, the prepayment of the average capital should be made as soon as possible within the first 65,438+0/3 years of the loan term, and no penalty will be charged.