How to repay early repayment is more cost effective?

If you choose a combination of commercial loan and provident fund, repaying the commercial loan first will be much more "preferential". Because the provident fund loan contains the component of policy subsidies, the loan interest rate is much lower than that of commercial loans, and the interest rate hike is also smaller than that of ordinary commercial loans, so it is relatively cost-effective for home buyers to repay commercial loans with higher loan interest rates in advance.

1.Since the interest paid by the "equal principal and interest repayment method" will be higher than that of the "equal principal repayment method" after the same loan has been borrowed for a period of time, and the interest paid at the time of prepayment is non-refundable, this is relatively more interest than the original prepayment method. Therefore, if you plan to repay the loan early, it is better to choose the "equal principal repayment method" loan, so that the prepayment is more cost-effective.

2.Not everyone has to use the "equal principal repayment method" to repay their loans, depending on your own financial plan. For those with high salaries or diverse incomes, it is advisable to adopt the "equal principal repayment method"; If you have more funds and do not plan to repay the loan early, it is recommended that you also use the "equal principal repayment method" to repay the loan.

Because, although this repayment method has greater financial pressure in the early stage, it can reduce the pressure in the future, and its characteristic is that over time, the later the repayment will be less and easier. If you are a civil servant, an ordinary teacher, a general researcher, or a person who has a stable job and has no quarrel with the world, it is recommended that you still choose the "equal principal and interest repayment method".

The choice of loan prepayment method is based on the borrower's own circumstances. Lenders have different loan natures or loan repayment methods, which will lead to different ways to prepay the loan. When you have similar problems, you must first check your own reality and then choose according to your own situation.

The methods are as follows: 1. Full early repayment. The buyer pays off the entire remaining loan in a lump sum, but the interest paid is non-refundable and the remaining interest can be waived.

2. Partial early repayment, the remaining loan to keep the monthly repayment amount unchanged, the repayment period will be shortened, this way can save more interest.

3. Partial early repayment, the remaining loan will be repaid less per month, and the repayment period will remain unchanged. This way can reduce the burden of monthly payments, but there is no second way to save money.

4. Partial early repayment, the remaining loan will reduce the monthly repayment amount, and at the same time shorten the repayment period, which saves more interest.

5. The remaining loan will keep the total principal unchanged, and only the repayment period will be shortened. This method will increase the burden of monthly payment, but it can reduce part of the interest, which is slightly less cost-effective than other repayment methods.

Extended Information: 1. What is the best year for prepayment?

If the mortgage repayment method is the same principal, the bank staff recommends that the loan be repaid within the first half of the total loan time. Because the principal repaid by the equal principal repayment method is fixed, the proportion of the principal is relatively large, and the interest is much less than that of the equal principal and interest.

2. When is the most cost-effective time to repay the mortgage?

The first scenario: the bank's benchmark interest rate is lowered.

The state adjusts the mortgage interest rate accordingly every year according to the property market and financial relations. Mortgage interest rates are either raised or lowered, and if the interest rate fluctuates high, we need to pay more interest, and if the interest rate is lower, we pay a lot less. Sometimes don't underestimate this one point or two points, it will make you pay tens of thousands less.

It is important to know that the penalty interest is calculated based on the benchmark interest rate, and if you repay early when the interest rate is higher, you will be fined a little more, and if the interest rate is lower, it will be a little less.

The second case: the equal principal repayment exceeds the repayment period1 3

Anyone who has ever taken out a loan knows that there are generally two ways to repay the loan. Equal principal repayment, that is, in addition to the equal principal repayment, the equal interest on all the remaining money. But as you pay back, the less interest you pay.

If you have already repaid the loan for 1 3 years at this time, the interest you need to repay is not much, and the rest of the repayment is the principal, and there is no point in making a one-time early repayment. If you think this interest is nothing, it's okay to pay it back in advance.

The third case: the equal principal and interest has exceeded 50% of the repayment period

Equal principal and interest is another type of repayment, which is the total amount of your loan and interest divided by the time of the loan, and the interest and principal accrued each month. Much as mentioned above, if you are halfway through your repayment period, you have already repaid at least 60% of your total interest. It is also not cost-effective to repay the loan early if this is the case.

Nowadays, it is not easy to get a loan from a bank or even other financial institutions, and the qualifications of the process to be reviewed are also very strict. Now that you've paid off most of the interest, it's better to put your money in a place where it's more valuable to invest.

Hello! The early repayment of personal housing mortgage loans of ABC is handled as follows: the borrower shall submit a written application to the lending bank at least 30 days in advance and obtain the consent of the lending bank to apply for early repayment of the housing loan.

For early repayment of personal housing loans, the materials to be brought are the borrower's identity document, personal housing purchase guarantee loan contract, and the original housing loan repayment card (discount), and the application should be submitted to the original loan agency in advance as agreed in the contract. Please consult your local lender for details. The standard of liquidated damages for early repayment is subject to the loan contract signed between the customer and our bank, please check the provisions of the loan contract or contact the loan handling branch for verification.

1.Banks have different rules for early repayment, so it's important for lenders to understand the bank's procedures before deciding to repay the loan.

2.Different banks have different procedures, so be sure to consult the documents you need to bring, such as ID cards, borrowing contracts, documents for receiving real estate certificates, power of attorney for withholding repayment, and other bank lending procedures, and go to the loan handling bank for processing.

3.Some banks have opened online loan repayment channels, such as Industrial and Commercial Bank of China, to find the entrance to make an appointment for repayment - fill in the repayment date (within half a year) - make an appointment for repayment (partial repayment or full settlement).

4.If you choose to settle in full, select the reason for repayment, wait for review after submitting the application, and prepare the repayment amount on the bank card.

5.If you choose to repay partially, you can choose to shorten the repayment period or reduce the repayment amount, wait for review after submitting the application, and prepare the repayment amount on the bank card.

6.If all the loans are settled, you need to go through the cancellation procedures of the mortgage with the lending bank, and you need to bring your ID card, private seal, loan and guarantee contract, original real estate certificate (if the real estate certificate has been issued, you need to borrow it from the housing authority, if the real estate certificate has not been issued, you do not need the real estate certificate) and other relevant information, and go through the withdrawal procedures on working days.

7 When you get the Notice of Cancellation of Mortgage issued by the Housing Authority, it is basically equivalent to going through the entire process, and the property is all owned by the individual.

8 In fact, the mortgage interest rate fluctuates with reference to the LPR interest rate, which is adjusted once a year, and if the mortgage interest rate is very high, you can indeed choose to repay the loan early.

Precautions. 1. If it is a portfolio loan, you can choose how to repay the commercial loan in advance and then repay the provident fund loan.

2. If the mortgage term is long, it is recommended to repay the loan in advance if the retirement age is exceeded, and the retirement life should be comfortable and comfortable, and the mortgage is not conducive to improving the standard of living.

3. If you have bought insurance when applying for a housing loan, if you have prepaid the loan or shortened the loan term, you can apply to the insurance company for a refund of part of the insurance money.

4. If part of the loan is repaid in advance, it is more cost-effective to give priority to shortening the loan term from the perspective of saving interest.

All in all, whether to repay the mortgage in advance or not should be combined with your own situation, if you are good at financial management and good at investment, you do not have to repay it in advance. Otherwise, you can consider prepaying the loan!

Prepayment options are the most cost-effective option to pay off in full

There are generally two options for early repayment, one is full prepayment and the other is partial prepayment.

It is the best deal to pay it all off in advance。Because the remaining interest does not have to be paid again, but prepayment is also considered a kind of default, you need to pay a certain amount of liquidated damages, and there are requirements for the repayment time, the key is to calculate the time of prepayment.

Loans are usually repaid in a lump sum in advance, preferably at the beginning of the repayment, i.e. within 5 years of repayment. In this way, the interest that has been paid is relatively small, and if you repay the loan in advance later, it will be unnecessary to wait for the interest to be repaid, and you will not save much money. Note that major banks have different rules and fees for prepayment.

For example, Bank of China will not charge liquidated damages for repaying the loan for more than 1 year, and charge no more than 6 months of interest as liquidated damages for less than 1 year; ICBC will not charge liquidated damages for 1 year, and will charge at least 3 months of interest for less than 1 year; CCB will charge 3% of the prepayment amount for less than 1 year, 2% of the prepayment amount for 1 2 years, and 1% of the prepayment amount for 2 3 years.

At present, there are two ways to mortgage loans, one is called interest first and principal later, and the other is called principal and interest loan. After a long period of interest-bearing and post-principal time, it is not suitable for early repayment, while interest-bearing loans can be repaid at any time.

If you're going to repay your loan early, the best way to do it is to repay it as early as possible, as the bank will usually calculate a certain amount of liquidated damages based on when you repay early. In addition, if you have a prepayment fee in the loan fraud contract, then you also need to consider this part of the fee. If you want to save as much as possible on your repayment costs, here are a few ways to consider:

1.Prepay part of the loan. This reduces the principal and interest on the loan, which in turn shortens the repayment period and reduces the interest on the loan.

2.Repay the entire loan early. This avoids interest and processing fees for future repayments, thus saving on repayment costs.

3.Negotiate with the bank to reduce the penalty and handling fee. Some banks will adjust fees such as liquidated damages and handling fees based on the customer's repayment history and credit rating, so you can try to negotiate with the bank to negotiate for more favorable repayment terms.

Either way, you need to consult the bank staff in advance and understand the relevant terms and fees in the repayment contract to avoid unnecessary losses.

Repay the loan according to the skeeping period.

Both regular and early repayments have their own advantages and disadvantages, and it is up to you to consider which one is more suitable for you.

Regular repayments can give you more flexibility in your money and won't strain your cash flow by paying off the loan all at once. At the same time, making regular payments can improve your credit rating and make it easier for you to be approved for future loan applications. However, regular repayment is subject to interest and processing fees per instalment, and the total interest expense may be higher than early repayment.

Early repayment can shorten the term of your loan and reduce the interest and handling fees you pay. In addition, early repayment can reduce your debt burden and give you a better credit history. However, early repayment may result in a penalty for early repayment and may also put some pressure on your cash flow.

To sum up, there are advantages and disadvantages to regular repayment and early repayment, and you need to choose this slip according to your personal situation. If your cash flow is tight, it may be more appropriate to make regular payments; If you're in a better financial position and want to clear your loan sooner rather than later, early repayment may be more appropriate. If you decide to repay early, you need to carefully review the loan contract before making a payment to understand the penalty for early repayment so that you can make an informed decision.

When buying a house, many people take out a loan to buy a house, and after a few years, they have more money and don't want to trouble repaying the loan every month, so they will be entangled in whether they need to repay the loan in advance, so is it cost-effective to repay the loan in advance? How much penalty does it cost to repay the house early?

How much penalty does it cost to repay the house early?

In addition to the normal part of the loan, the bank will also charge a certain amount of liquidated damages for early state chain repayment; Banks will make up for the lack of liquidated damages for the loan interest, and the current ways to collect the default amount are as follows:

1. Liquidated damages of 2%-5% will be charged according to the unrepaid part of the loan, and if the remaining 500,000 yuan of the potato fruit loan is not repaid, 10,000 liquidated damages shall be paid for early repayment.

2. 1-3 months of interest will be charged according to the total amount of the loan, with a time limit, if the loan is more than 2 years but less than 5 years of liquidated damages, 3 months of Wu Jixian interest, 5 years but less than 10 years of 2 months of interest, 10 years of 1 month of interest, etc.

3. There are also some banks that charge liquidated damages by calculating the repayment amount of 1-3 months.