Repay the mortgage in advance: cost-effective or a pitfall? Analysis of hot spot data on the entire network for 10 days
Recently, "pay early repayment of mortgage loans" has become a hot topic on the Internet. The combined policies such as the central bank's interest rate cuts and the adjustment of existing mortgage interest rates have made many home buyers begin to weigh whether to repay in advance. This article combines hot data on the entire network in the past 10 days and provides you with in-depth analysis from three dimensions: policy, economy and case.
1. Analysis of the popularity trend of the entire network
| platform | Related topics | Top rankings for hot searches | Core dispute points |
|---|---|---|---|
| 286,000 items | TOP3 | Is it reasonable for banks to charge liquidated damages? | |
| Tik Tok | 520 million views | TOP1 of life list | Tutorial on using the advance repayment calculator |
| Zhihu | 4300+ answers | Top 5 financial categories | The optimal solution for equal principal and interest vs equal principal |
Comparison of 2 and 4 common situations
| Repayment phase | Remaining years | Interest rate level | Suggested strategies |
|---|---|---|---|
| Early stage (1-3 years) | ＞20 years | ＞5% | Priority to return in advance |
| Medium term (5-10 years) | 10-15 years | 4-5% | Repay some early loans |
| Later (more than 10 years) | ＜10 years | ＜4% | Not recommended to return in advance |
Three and five key decision-making factors
1.Cost of liquidated damages: Most banks stipulate that liquidated damages are exempted from repayment for one year, and some banks charge 1-3 months of interest.
2.Comparison of investment yields: If the financial management income can exceed the mortgage interest rate by more than 1.5%, it is recommended to retain cash.
3.Differences in repayment methods: The proportion of interest in the early stage of equal principal and interest is high, and it is more cost-effective to advance in the first 5 years; the difference in equal principal is small.
4.Personal tax deduction loss: The first mortgage loan will be deducted for personal tax of 1,000 yuan per month, and the benefits will be lost if the early repayment is lost.
5.Home cash flow security: It is recommended to keep emergency funds for at least 6 months before considering repayment.
4. Latest policy impact in 2023
| Policy name | Implementation time | Impact on early repayment |
|---|---|---|
| The interest rate of existing mortgages has been lowered | September 25, 2023 | Some high-interest loans can be applied for a reduction |
| Continuous down-regulation of LPR | June 20, 2023 | New loan interest rates dropped to 4.2% |
5. Expert advice
Financial analyst Wang Wei pointed out: "The early repayment wave in the third quarter of 2023 has three new characteristics: ① The amount of single repayment dropped from 500,000 to around 200,000, ② Young people's willingness to repay is higher than middle-aged people ③ The repayment ratio in second-tier cities is more than that in first-tier cities."
6. Practical advice
1. Log in to mobile banking to view the specific terms of the contract, focusing on the "Advance repayment" chapter
2. Use the official loan calculator of the China Banking and Insurance Regulatory Commission to compare different solutions
3. If you need to make an appointment, some bank APPs have opened online reservation channels
In summary, whether to repay the loan in advance requires a comprehensive assessment of personal financial status, loan terms and market environment. Under the current economic situation, maintaining moderate liquidity may be more important than simply reducing liabilities.
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