Is it cost-effective to repay the provident fund loan in advance?
Whether it is cost-effective to repay the housing provident fund loan in advance mainly depends on the repayment method. In the process of portfolio loans, we can first consider returning commercial loans to provident fund loans. The order of prepayment is that the interest rate of provident fund loans is lower than that of commercial loans in the same period. Therefore, if there are both commercial and housing provident fund loans, you should choose to repay the commercial loans first and then the provident fund loans. According to the relevant provisions of the provident fund loan contract, during the normal repayment period of the provident fund loan, the borrower may repay in part or in one lump sum in advance after the normal repayment with the consent of all parties to the loan contract.
Don't prepay in the first year. It should be noted that you should not repay the loan in advance within the first year. According to the relevant provisions of provident fund loans, the repayment amount should be in advance after 1 year repayment, and the repayment amount should exceed the repayment amount of 6 months. Another point is that the loan contract stipulates that those who repay the loan in advance shall not be overdue. If it is overdue, you should pay off the arrears first and then apply for early repayment.
Don't blindly follow the trend and repay in advance. Housing loan is a long-term loan, and the interest rate is adjusted once a year. In other words, even if the interest rate is adjusted in the near future, the new interest rate will be implemented from 65438+ 1 next year. Repaying the loan in advance means that we must give up part of the working capital and bear greater financial pressure at the same time. Whether the borrower has better investment channels. Instead of going to the bank for repayment, it is better to find a good investment channel for "Qian Shengqian" and invest in stocks or funds.
The loss of time value should be considered. In the housing loan, the reason for paying a lot of interest in advance is that the speed of returning the principal is accelerated and the bank funds are reduced. However, money has time value. For example, someone borrowed 654.38+00,000 yuan from you. Due to rising prices, the 654.38+00000 yuan that may be returned after half a year is actually only worth more than 9000 yuan. Therefore, when the house price rises, people who originally planned to pay off the house price in one lump sum can go to the bank for a loan, but for those who have already borrowed to buy a house, it is generally not necessary to pay off in advance.