For Chinese people, buying a house is a life-long event, and it's also a very annoying thing. Because of various reasons, such as the economy, most people buy a house from a loan bank. Can we pay back the house loan in advance with money in the future? Is it cost-effective to pay back the house loan in advance? Today's editor will give you a detailed explanation.
1. Types of prepayment
1. All prepayments, that is, all the remaining loans are paid off in a lump sum. After repayment, the interest of the remaining part is saved, but the interest of the paid part is not refunded;
2. Partial prepayment, the remaining loans remain the same monthly repayment amount, shorten the repayment period;
3. Partial prepayment, the remaining loan will reduce the monthly repayment amount and shorten the repayment period. These two kinds of situations are quite common. They can be calculated and selected according to the specific economic capacity, the amount to be repaid and the interest rate, which can save a sum of interest;
4. For partial prepayment, the remaining loan will reduce the monthly repayment amount and keep the repayment period unchanged. This method can reduce the monthly payment burden, but the interest saving degree is slightly less than the second method;
5. The remaining loans keep the total principal unchanged and only shorten the repayment period. Compared with the latter, it will increase the monthly supply and reduce part of the interest, but it is not cost-effective.
2、 Different ways of prepayment are different
The essence of prepayment is to reduce the principal as much as possible, shorten the loan term and make the interest paid less.
Compared with the two repayment methods of equal principal and interest, the interest paid by the method of equal principal and interest repayment will be higher than that by the method of equal principal repayment after the same loan is lent for a certain period of time, and the interest paid when the loan is repaid in advance will not be refunded, which means that a lot of interest that should not have been paid in advance has been paid. Therefore, if there is a plan to repay the loan in advance, it is more cost-effective to choose the 'equal principal repayment method' loan.
According to the repayment calculation method of equal principal and interest, if the loan period is more than half, it means that all loans and interest have been repaid more than 50% - 80%, and the remaining monthly principal accounts for a large proportion, and the amount of interest is very small. At this time, the money saved by prepayment is not much, and most of the money, most of the pressure has been shouldered, and the rest of the small part does not need to be delivered all at once.
If the repayment method of equal principal and interest is more than half, the prepayment is not cost-effective. For those who use the same principal repayment method to repay the house loan, according to the calculation method of equal principal, generally, when the repayment time is more than one third, the prepayment is not cost-effective. Because there is not much left in the interest at this time, the rest is basically the principal, and the principal will never be less.
Tips：
1. If there is an early repayment plan when buying a house, it is suggested to choose the equal principal repayment method when making a loan;
2. If the repayment period of equal principal and interest method is more than half, or the repayment period of equal principal method is more than one third, prepayment is not recommended without special circumstances.
3、 Who is suitable for prepayment?
1. Equal principal and interest loans, no more than one-third of the loan life, such mortgage holders can prepay.
2. Equal principal, no more than a quarter of the total loan life, such mortgage holders can do part of the prepayment.
3. If you want to pay off the loan as a mortgage, or pay off the loan and withdraw the mortgage to sell the house, such a lender can prepay the loan.
4. Housing loan with higher monthly payment amount of provident fund, because the provident fund is dedicated, if it is not used to repay the housing loan, it can not be taken out in the account, so it is better to repay the loan in advance.
5. If you really don't like 'debt repayment' and the mortgage is in the early stage of repayment, you can consider prepayment, so that you can pay off the loan as soon as possible, and save a lot of interest on the mortgage.
6. Although the benchmark loan interest rate of commercial banks has been lowered, if your mortgage interest rate is not discounted and floating, you can also consider prepayment to reduce the loan cost.
7. If you don't have a high-yield financing channel, there are many financing products whose annual yield is higher than the benchmark loan interest rate. However, if you are not a person who is good at financing, and you don't have a high-yield financing channel, you might as well consider prepayment.
4、 What are the precautions for prepayment?
1. Advance appointment
Within the loan period and one year after the loan is granted, with the consent of the bank, a written application can be made for early repayment of part or all of the loan. General banks need 2-7 working days to handle this business. Each bank has different regulations on early repayment of loans. The lender must make clear the operation process of the loan bank before deciding to repay the loans in advance.
2. Loan documents should be prepared
If the borrower wants to repay the loan in advance, he or she should take his or her own ID card and loan contract to the bank for examination and approval after applying by telephone or in writing. If it is the borrower who settles all the balance, after the bank calculates the remaining loan amount, it is convenient for the borrower to deposit enough money to repay the loan in advance.
If it is the client and the owner of the mortgage transfer business, it is better to find a professional guarantee agency to do entrusted notarization, so as to avoid the risk that the client will not buy after the prepayment of the client or the client will use the down payment to help the client pay off the balance payment and the client will increase the price.
3. Calculation method of interest rate after interest reduction
The new interest standard will be calculated at the beginning of the new year. Therefore, even if the loan is to be repaid in advance, the lender should seize the opportunity to repay the loan as early as possible at the end of the year before the new interest takes effect. After paying off all the loans in advance, the lender should remember to surrender to the insurance company and other departments.
4. Surrender
After the lender settles all the balance payment in advance, the bank will issue a settlement certificate. The borrower will take the original loan settlement certificate, the original copy of the original policy and the invoice issued by the bank, call the relevant insurance company, and make an appointment for cancellation. When the borrower handles the loan, the bank will handle the mortgage registration.
If the borrower settles the loan, he must not forget to solve the mortgage. The borrower shall take the real estate certificate, settlement certificate and other right certificates mortgaged in the bank to the District Construction Committee for mortgage.