In advance to repay the mortgage, reduce the cost of monthly supply or shortening the repayment period?

What is the most painful thing in the world?

Everyone has their own answers. Some people think that people are alive and money is gone; some people think that people are dead and money has not finished. I personally think that the most painful thing is the house I bought at the highest interest. After a few months, the loan interest rate dropped greatly, and it lost hundreds of thousands.

Recently, the central bank has conducted a new round of interest rate cuts. The lowest loan interest on the first home has been reduced to 4.1%. If you buy a house at this time, this will be the lowest mortgage interest rate in recent years.

But do you know? A few months ago, the interest rate of the first home loan in some places stayed at a high level of 6.37%(30%higher than the benchmark interest rate of 4.9%).

I have a friend bought a house a few months ago, and now it is extremely painful because he loaned 1 million yuan. Because of a few months earlier, the interest was 505,000 yuan more. This is a bit difficult to accept this change. After all, the loan interest rate has dropped too fast, and more than 500,000 is gone.

Because the interest dropped too fast, he decided to repay in advance. However, the new problem is here again, because I do n’t have 1 million yuan in cash now, and there is no way to pay off at one time, so I can only choose to pay some loans in advance. As we all know, there are two repayment methods for repayment in advance. One is the method of repayment limit and shortening the loan period. The other is the method of repayment periods unchanged, but the method of repayment quota (referred to as monthly supply) of the monthly repayment quota.

What kind of repayment method will be more cost -effective?

We must first clarify, 1 million yuan, the loan period of 30 years, the equivalent principal and interest method is used, the loan interest rate is 6.37%, the monthly repayment amount is 6235.4 yuan, and the total interest is 1.245 million yuan.

Assuming that we now have 500,000, the preparation of the repayment quota is unchanged and the loan period is shortened. So when can the repayment period be shortened? How much can interest be reduced?

After simple calculations, we know that the repayment period can be quickly reduced by more than 21 years, and the repayment period has become less than 9 years. Do you feel incredible? We just repaid half of the loan amount in advance, but the repayment period was shortened by about 70%, which may exceed the expectations of many people.

In terms of interest, repayment of early repayment can be reduced by 10.88 million yuan, accounting for 87.4%of the total interest.

Suppose we are preparing to repay 500,000 in advance, the selection of repayment quota is reduced, and the loan period is unchanged. Then the next month requires 3114.8 yuan, and interest can be reduced by 617,000 yuan.

Is it surprising to see this data? The same repayment of 500,000 yuan in advance, how can the interest difference of 471,000 yuan? The most critical reason is that the loan period is different.

Does this mean that you must choose the first way to repay in advance after being rich?

This is not necessarily, because if our income is not stable, the higher repayment limit will make us more stressful. Once we have unemployment, then we have to pass the loan to repay the mortgage and use the loan to repay the mortgage. The interest rate will definitely exceed 6.37%, which will be uncomfortable.

In the same way, assuming that we adopt the second method of repayment. Although the interest is paid a lot, the monthly supply decreases by about 50%, from the original 6235.4 yuan to 3114.8 yuan. The repayment pressure has relatively declined significantly.

In summary, assuming that we want to repay in advance, and there is no problem with the existing repayment capacity, then we can choose the method of decreased loan periods and unchanged monthly supply. After all, you can save a lot of interest! Suppose our current income is very unstable, and the epidemic is intermittent, which pose a certain threat to our income stability, so it is best to choose a plan that the loan period is unchanged and the monthly supply decreases.

Then the question is coming again. Assuming that our family's monthly salary is only 10,000 yuan, at least 3500 yuan per month, and the monthly supply is 6235.4 yuan, which means that we cannot pay money every month. At this time, there was a sudden 500,000 yuan. It is best to shorten the repayment period on the basis of reducing the repayment quota.

In fact, we can choose a combination method, such as: 300,000 for the loan period to shorten the loan period, and then take out 200,000 for the monthly supply. The advantage of this is that it has shortened the loan period, but also reduced the monthly supply, and the interest also saved a lot.

Of course, the most ideal situation is that we have enough cash and pay off at one time, so that the most interest can be saved.

Finally, there is a tip. Suppose you can use the cash in your hand to invest in other places. You can earn more than 6.37%every year, then you don’t need to repay in advance, because you can use this money to achieve positive direction to achieve positive direction Cash flow.

How to choose it depends on what environment we are in one!

This is the best era and the worst era. With capital thinking and innovation models, the world is your stage!

In the new business world, there are no eliminated industries. Only the eliminated products and outdated business models will focus on product innovation and model innovation in the future.

If a company or a boss, if the shortage of innovation ability is destined to be defeated in advance, please remember that there is no innovation, how can you have imagination!

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