Repayment of Loans in Advance(4)
2. whether the borrower has a better investment channel. A little money rather than to go to the bank repayment, it is better to find a good investment channels for "money to make money", investment in stocks or funds is also a good choice.
3. the loss of time value should be considered. In home loans, early repayments are underpaid because the rate of repayment of principal is accelerating and the bank funds are being used less. But the currency is time value, such as others borrowed 10,000 yuan from you, due to price increases, may be returned in six months after the 10,000 yuan is actually only worth more than 9,000. So when prices rise, those who originally intended to pay off the house in one lump sum, can go to the bank loan, and for those who have already borrowed to buy a house, there is generally no need to pay off in advance.
In addition, if the buyer chooses a provident fund loan, after the early repayment of the loan, the provident fund will stop using, and according to the current interest rate to save, until retirement can withdraw, this piece of money in the coming years will bring too little income. Of course, the provident fund policy will vary according to the region, and some areas are allowed to withdraw the provident fund on a one-year basis to repay the housing loan, at which time the flexible use of the provident fund can also be considered.
Not suitable for the crowd
For the average consumer, home loans are an important part of day-to-day spending, monthly payments often account for 30%-50% of monthly income, in the case of frequent interest rate hikes, some "housing slaves" pressure began to increase, eager to repay the loan early. Although the interest accumulated by frequent interest rate hikes is more, it is not appropriate to disrupt the original financial plan for consumers who are short of funds and have limited economic ability. At the same time, the use of emergency funds increases the risk of future life, and may be "small and small".
At present, in commercial loans, the most widely used is the equivalent principal and interest repayment method. After entering the repayment stage, the composition of the monthly payment, most of the principal, early repayment significance has been small, if the consumer funds are not very abundant, can not rush to advance repayment. Especially into the late repayment period, there is no need to use centralized funds to repay. This not only disrupts the financial planning, but also is not conducive to the effective use of funds.
From the current bank's conditions for early repayment, generally required repayment is an integral multiple of 10,000 yuan, the same amount of principal repayment method refers to the monthly repayment of the principal is equal, and then according to the remaining principal calculation interest, so the initial repayment is more, the pressure is greater, with the principal is decreasing, the monthly supply is also decreasing, so the later repayment seems more relaxed. Take the loan of 300,000 yuan, the term of 20 years, for example, from the repayment period of the sixth, that is, the repayment period has reached 1/4, in the composition of the monthly supply, the principal began to exceed interest, if this time to make early repayment, then the part of the repayment is actually more of the principal, so that effective interest savings are not used.