In today's society, many people buy houses with loans. Generally, after repaying the loan for a period of time, many people also have some savings in their hands and think about repaying the loan in advance. So, can the loan be repaid in advance? General property buyers will have provisions on this point when signing loan contracts with banks. If they meet the provisions of the contract, they can repay the loan in advance.
1、 What is the best situation not to repay the loan in advance?
Although we say that you can repay the loan in advance as long as you comply with the provisions of the loan contract, the following Xiaobian suggests that you'd better not repay the loan in advance.
1. It's the end of loan repayment
It is usually the most cost-effective to repay the loan in advance at the beginning of the loan. If you are at the end of the loan repayment, there is no need to repay the loan in advance. After all, most of the remaining loans are principal.
2. Enjoy mortgage interest rate discount
Now the major banks have cancelled the mortgage interest rate discount and even raised the mortgage interest rate. If you have enjoyed the mortgage interest rate discount, you'd better not repay the loan in advance. Once you choose to repay the loan in advance, you need to re sign the loan contract, and you will no longer enjoy the interest rate discount.
3. Liquidated damages shall be paid
Although banks allow housing slaves to repay their loans in advance, they often charge high liquidated damages. If the amount of liquidated damages is greater than the underpayment of interest, there is no need to repay the loan in advance.
4. There will be significant expenditure in the near future
Before the lender repays the loan in advance, it is best to make a budget plan to see whether there are major expenditures in the short term, such as buying a car and children's education. If there are some major expenditures, the Xiaobian recommends that you put it on hold first.
5. There are better financial projects
If you have a financial project whose income is much higher than the mortgage interest, you might as well give up paying back the loan in advance and put your money into a better financial project.
2、 What should we pay attention to before repaying the loan in advance?
1. Understand the policies of banks to repay loans in advance
Each bank has different policies on repaying the loan in advance. Some even repay the loan in advance, which will affect the credit record and even pay fines. Therefore, it is necessary to understand it clearly in advance. It is suggested to be more cautious when handling bank loans.
2. Shortening the repayment period is more economical than reducing the monthly payment
In addition to paying off all the debts in advance, there are two options: one is to shorten the repayment period when the monthly supply remains unchanged, and the other is to reduce the repayment amount when the period remains unchanged. Specifically, if you want to repay part of the mortgage in advance, you can choose to shorten the repayment period and keep the monthly payment unchanged, or reduce the monthly payment and keep the repayment period unchanged. At the same time node, the former saves more interest expenses than the latter.
3. Timely handle the cancellation of real estate mortgage
During the loan period, the house property certificate is mortgaged to the bank, and the house cannot be rented or resold. Therefore, after paying off the loan, the mortgage must be relieved. Otherwise, the mortgage record is still recorded in the real estate department, which will bury hidden dangers in the future.