Two types of customers can consider repaying the loan in advance. First of all, customers who are still in the early stage of repayment, because repayment interest expenses generally occur in the early stage of repayment, but in the later stage, most of the interest has actually been paid off, so it is not cost-effective to repay the loan in advance.
If you have idle funds on hand and have no good investment direction, it is also a good choice to repay the loan in advance. Secondly, it is the lender who implements floating interest rates. Since the floating interest rate is already very high, it will be more cost-effective if such lenders have the ability to pay off their loans in one lump sum.
Benefits of early repayment:
For most people who buy a house with a loan, the pressure of life is very great, and there is also psychological pressure. "Mortgage" is like a mountain, which makes him breathless. If you have extra money to repay in advance, it is undoubtedly the best way to relieve the pressure.
Early repayment can not only reduce the pressure of life every month, but also reduce the interest on mortgage.
Paying off the mortgage in advance can also get the ownership of the house in advance. Anyone who has handled a mortgage knows that the house was mortgaged to the bank before the mortgage was paid off, and I have no right to resell it or give it away. If you can repay the loan in advance, you will have the ownership of the house.