Buying a home loan is now the mainstream way for people to buy a house, after that, it has become a long-term way to repay. Loan is like a knife hanging over the head, without loan, everyone is eager to light. So many people still want to pay off their mortgages early to ease the pressure of monthly payments. But is prepaying a home loan really a good deal?
The bank settles the monthly interest at an agreed rate. The monthly interest payment is the amount of principal you borrow from the bank multiplied by the monthly interest rate. In other words, as long as the principal is acquired, the interest will be returned. The higher interest payments in these years are due to the use of large amounts of principal. As the monthly principal is paid back one by one, the total amount of the bank principal is reduced and the monthly interest payment is reduced as a matter of course.
Regardless of the type of loan, although the total interest rate may seem to make a big difference, there is not a big difference in the nature of the loan, and it is not possible to say which type of loan will allow banks to charge more interest. If you want to pay off your mortgage early, here are a few tips:
1, now the hand of idle funds are more, and there is no good investment channels.
2, going to transfer, because the mortgage is based on the house you buy as collateral, so if your house needs to transfer, so whether it is cost-effective, need to finish the loan.
- The mortgage is nearly due and intends to raise the mortgage rate to activate the funds on hand.
4, memory is not very good, often forget to repay on time. In order to avoid the credit problems caused by forgetting to repay the loan, you can also repay the loan in advance.
You looked at the above mortgage repayment in advance of the introduction, should roughly understand the advance mortgage is not cost-effective. Each person’s specific situation is not the same, so it is cost-effective to see which kind of situation you are.