On January 1, next year, the original personal housing loan preferential interest rate will be cancelled for all mortgage borrowers. Even if the bank can obtain a floating interest rate, the interest rate of 5.51% is still higher than in the past. In order to repay less interest, many people intend to repay their loans in advance. However, before repaying the loan in advance, in addition to clearing the contract and understanding the loan bank's repayment policy, you may wish to calculate your own repayment cost, and do not make a big mistake.
Early repayment defaults vary
Over the past 10 years, the bank's requirements for early repayment have been adjusted, so even in the same bank, the conditions for early repayment of loans applied at different periods are different. Therefore, if citizens want to repay their loans in advance, they must first look at the loan contract to find the detailed regulations.
It is understood that most banks in this city currently stipulate that loans cannot be repaid within one year after the loan is processed, and some joint-stock banks are slightly accommodative and stipulate that no repayment can be made within six months after processing. If the loan is repaid in advance, liquidated damages will be charged, and the method of collection varies slightly from bank to bank.
Liquidated damages should not exceed interest expenses
Although early repayment of loans can avoid paying more interest next year, financial experts believe that early repayments of liquidated damages that do not exceed the stipulated period of the bank should be accounted for in advance.
For example, taking a loan with a term of 20 years, a total amount of 500,000 yuan, and an equal principal and interest method of repayment, as an example, at the current 5.31% interest rate, the monthly repayment amount is 3386 yuan. If the next year's benchmark interest rate is 6.12%, the monthly repayment is calculated. The amount is 3,616 yuan, which is 230 yuan more than the original. If the bank's lower interest rate next year is 5.51%, the monthly repayment amount is 3,442 yuan, which is only 56 yuan more than the original. And if the loan of 500,000 yuan is less than one year repayment, now repay the loan in advance, and calculate according to the formula of 1% liquidated penalty for the total repayment, and the liquidated penalty is 5,000 yuan. In this way, repayment in advance may not be cost-effective.
Financial experts pointed out that a 5,000 yuan liquidated penalty can maintain the part that pays 56 yuan more for 9 months. Therefore, if the lender has repaid for more than 3 months or longer, it may not be appropriate to repay the loan in advance. It may be better to wait for 1 year before repaying the loan in advance.
Experts advise not to repay loans blindly
For this reason, bank mortgage experts advise citizens not to blindly repay loans in advance and calculate their costs. In addition, the following points should be noted:
First of all, you must make an appointment in advance to repay the loan in advance. Generally, banks require that the loan issuing bank be contacted in advance in January. Second, after repayment, the quality of life must not be affected. Don't be wronged to pay a few dozen yuan a month. Yourself; once again, each bank has a threshold limit for early repayment. Generally, the minimum early repayment amount each time is greater than 6 times the monthly repayment amount, and some banks have rules on the number of early repayments each year. Finally, It is possible to use the extra money to repay the loan in advance, but do not miss other better investment channels around you.