Many young people have similar plans to Kobayashi, and they have even taken action.
The experience sharing of various social platforms seems very convincing. But have you ever thought that you are suitable for prepayment?
And do you know the hidden risks of "lending" and "loan replacement" declared by various sales calls?
Mortgage interest rates continue to fall.
Repay the loan in advance and play new tricks.
"Is the advance payment so powerful?" A netizen of Xiaohongshu shared that CCB repaid 45,000 yuan in advance and the interest was reduced by 1.8 million yuan. Move the bricks quickly and pay back the commercial loan.
"I feel that the courtesy I received when I made a mortgage needs to be returned to the bank when I repay the loan." Another netizen lamented that if you go to the Agricultural Bank of China to repay the loan in advance, you will have to charge three months' interest as liquidated damages and make an appointment one month in advance.
However, the discussion among the neighbors in the owners' group also broadcasts some other situations that may be encountered in early repayment in real time. "There is a neighbor's mortgage in a joint-stock bank. I called and asked, saying that I could repay the loan in part in advance or settle it at one time. However, the term of office cannot be changed. " Kobayashi said that the neighbor originally wanted to shorten the repayment period, but was rejected by the bank.
Some neighbors have learned that a joint-stock bank can only repay "10 multiple" in advance, that is, "only 65438+ 200,000,300,000". However, a state-owned bank has restrictions on the lower limit and frequency of prepayment, "the minimum is 5,000 yuan, and the maximum is once a year, with liquidated damages".
The repeated downward adjustment of LPR benchmark interest rate has also made buyers standing at the high point of housing prices and interest rates begin to weigh the pros and cons.
Some of Xiaolin's owners mortgaged another house at an interest rate of 5.75%, settled the house at an interest rate of 6. 125%, and now they have bought an improved house with an interest rate of only 4.25%. "At the same time as changing houses, the interest rate was adjusted, and the pressure was much smaller in an instant."
"I'm going to repay the mortgage next month, the loan at the end of 20 19, with an interest rate of 6.3%." On August 22, after seeing the LPR quotation lowered again, Xiaodong, who bought a house three years ago, immediately thought of repaying the loan in advance.
Xiaodong calculated that he had paid off the remaining 2.3 million yuan first, then took out the mortgage and borrowed 3.3 million yuan. "The interest rate is only 3.6%, even if the loan fee of 1 minute is added, it is cost-effective."
Mortgage interest rates have fallen sharply.
The higher point dropped by more than 1 percentage point.
With the continuous adjustment of the real estate market, buyers are more cautious about buying a house. According to the data released by the National Bureau of Statistics in July 15, in the first half of 2023, the sales area and sales volume of commercial housing decreased by 22.2% and 28.9% respectively.
At the same time, the scale expansion of individual housing loans is getting slower and slower. In recent years, although the balance of individual housing loans has maintained a positive growth, the growth rate has been slowing down. Especially at the end of the second quarter of 2023, although the balance of personal housing loans reached a peak of 38.86 trillion yuan, it only increased by 6.2% year-on-year, hitting a new low in recent years.
On a quarterly basis, the increment of individual housing loans dropped significantly. In the first quarter of this year, personal housing loans increased by 520 billion yuan, 40% of the same period last year; The increase in the second quarter further narrowed to 20 billion yuan, compared with 9 10 billion yuan in the same period last year.
Accompanied by this, the interest rate of individual housing loans has quietly dropped.
According to the China Monetary Policy Implementation Report issued by the central bank every quarter, the weighted average interest rate of new personal housing loans by financial institutions from 2065438 to June 2007 was 4.69%. Since September, 2065438+2007, the average interest rate of new personal mortgage has risen rapidly and has remained above 5%. From 2065438 to September 2008, it rose to 5.75%, reaching the peak in recent years. After that, although it fell back, it was still above 5.33%.
Since the middle of this year, the interest rate of housing loans has changed.
On the one hand, the overall decline of mortgage interest rate is affected by the downward adjustment of LPR (loan market quotation) related to mortgage interest rate for more than five years, on the other hand, it is also related to the adjustment of housing credit policy.
According to the current loan rules, the new commercial personal housing loan interest rate is based on the LPR of the same period in the last month and is usually adjusted once a year. Since the beginning of this year, the five-year LPR has been lowered three times, with a cumulative reduction of 35 basis points.
This year1October 20th and May 20th, 65438, the LPR over five years decreased from the previous 4.65% to 4.6% and 4.45% respectively. At the same time, in May, the central bank and the China Banking Regulatory Commission jointly issued the Notice on Issues Related to Adjusting the Differentiated Housing Credit Policy, announcing that the lower limit of the interest rate of the first set of housing personal commercial loans would be lowered by 20 basis points.
On August 22nd, the central bank released the latest LPR data, and the LPR over five years was lowered again 15 basis points to 4.3%. The lower limit of LPR over five years since it was linked to the newly issued personal commercial mortgage in June 1965 was refreshed again.
The decline in mortgage interest rates not only benefits new home buyers, especially those who just need to buy, but also makes lenders who have been wary of high mortgage interest rates mixed.
Should I repay the loan in advance?
How should I judge?
For lenders a few years ago, it was hard to avoid being uneasy about the much lower mortgage interest rate. However, is it cost-effective to repay the loan in advance? Which groups are suitable for early repayment?
Kobayashi is a financial practitioner and has several years of financial management and investment experience. A few years after graduation, he was young and rich, and most of his idle funds were allocated to high-risk investments such as stocks.
However, the annualized rate of return of this wealth management product has dropped from the initial 4% to the current early 3%, which is gradually drifting away from the "high above" mortgage interest rate. After careful consideration, Kobayashi decided to redeem this part of the wealth management funds and repay the mortgage in advance. "I found a big circle and didn't find a stable wealth management product that could outperform the mortgage interest rate. I just paid half the mortgage first and reduced the leverage. " Xiao Lin has received it.
I arrived at the short message approved by the bank, and I am waiting for the deduction. For him, this kind of prepayment is undoubtedly a "higher income financial management method" compared with the investment channels that can accept the risk level at present.
Looking at the current bank wealth management market, taking the state-owned big behavior as an example, the relatively flexible T 1 wealth management yield is mostly between 2% and 3%, and the one-year regular wealth management yield is mostly between 3% and 4%, which is close to the newly adjusted LPR interest rate for more than five years and lower than the mortgage interest rate of most buyers in previous years. Of course, there are also individual financial returns exceeding 5%.
According to Puyi standard data, among the 2,576 public wealth management products sold from August 20 to August 26, 2023, the average annualized rate of return since its establishment was 3.29%. From the nature of investment, the average annualized returns of cash management products, fixed income products and mixed products since their establishment are 1.25%, 3.68% and 1.7% respectively.
Among the closed products in 12380 that only disclose the performance benchmark due in the first half of 2023, nearly 1200 products failed to meet the performance benchmark. Recently, the financial subsidiaries of some banks have also lowered the performance benchmark of financial products.
There are also opposite examples. Xiaojin, an Internet practitioner, bought a house in Chengdu on 20 16. At that time, the house price was much milder, and the loan interest rate was only 4%, which was 15% off the benchmark interest rate. At present, his monthly payment is only 1000 yuan.
His concept of financial management is moderate, and he adopts a popular way of saving money among young people-rolling time deposit. "One year (time deposit), two years, three years. Then it expires in one year and becomes three years, so that a three-year deposit will expire every year. " He introduced his safest "array method" to save money.
In addition to bank deposits, Internet financial management has not fallen. He started Yu 'ebao's plan of "saving money in 52 weeks", and saved 10 yuan in the first week. After that, the deposit amount will be increased by 10 yuan every week, and he can deposit 13780 yuan in 52 weeks.
As can be seen from the above example, not all people are suitable for repaying loans in advance. For property buyers, repaying loans in advance may be a "math problem".
What is a "math problem"? That is to grasp the only gold standard: mortgage interest rate VS return on investment to judge whether it is suitable for early repayment.
Specifically:
If the mortgage interest rate is at a high level, and the floating basis point bonus is high, reaching the level of 5% or even 6%, and there is no financial management method that meets or exceeds the mortgage interest rate within your own risk tolerance and preference, then you can consider repaying in advance.
On the other hand, if the mortgage interest rate is low, even falling on the basis of LPR, there are financial management methods with similar interest rates to choose from, or you want to keep some idle funds in your hand for a rainy day. "You have surplus grain in your hand, don't panic" and the repayment pressure is not great. You can rationally consider whether to repay in advance according to your own situation, instead of "blindly following the trend".
Misunderstanding:
These popular "popular science" are not reliable.
The average capital is 30 years, and it is best to pay off in advance in the seventh year? Are you familiar with similar statements?
On the major network platforms, the discussion about prepayment is still hot, and many eloquent "popular science" have been derived.
For example, whether to repay in advance depends on the repayment method and the length of repayment time. Repay part of the principal or interest in advance? Some of these various so-called "popular science" are actually unreliable.
The screenshot above is one of the "popular science" widely circulated on the Internet. There are both correct statements, such as the characteristics of different repayment methods, but there are also misleading points that cannot stand scrutiny, such as the statement about the best time to repay loans in advance.
Specifically, it claims that the "most cost-effective" prepayment time node is:
The average capital is 20 years, and it will be paid off in advance in the fifth year;
The average capital is 30 years, and it will be paid off in advance in the seventh year;
Equal principal and interest for 20 years, paid off in advance in the sixth year;
Equal principal and interest for 30 years, and paid off in advance in the eighth year.
Is that really the case? Let's take a look at two repayment methods: matching principal and interest and average capital.
● Equal principal and interest:
The monthly repayment amount (principal interest) is equal. Add up the total amount of loan principal and interest, and then distribute it evenly to each month of repayment period. The proportion of principal in monthly repayment increases month by month, and the proportion of interest decreases month by month.
Its advantages are convenient arrangement of income and expenditure and "easy repayment", which is suitable for borrowers with relatively stable income. The disadvantage is that in each repayment amount, the proportion of the principal in the early stage is small, and the proportion of the principal in the later stage is gradually increasing. On the whole, the total interest expense is higher than the repayment method in average capital.
● Average capital:
The monthly repayment amount is unequal and has been decreasing. Among them, the principal remains unchanged, the interest decreases month by month, and the interest paid back is the interest generated by the remaining loans in that month.
The advantage of this method is that it saves interest than the equal principal and interest. At the same time, there are also shortcomings, that is, in the early stage of repayment, the repayment amount is large and the repayment pressure is great.
Then, without considering other costs such as early repayment of loans, is there really a more "cost-effective"?
Let's follow the saying that it is most cost-effective to pay off the average capital principal and interest in the fifth year of 20 years and the saying that it is most cost-effective to pay off the principal and interest in the sixth year of 20 years.
Suppose there is a loan with a loan amount of 654.38+0 million, a term of 20 years (240 installments) and an interest rate of 6%. According to the calculation, the total principal and interest of this loan for 20 years is 654.38+0.7 1.94 million yuan; Under the average capital, the total loan principal and interest for 20 years is 654.38+602.5 thousand yuan.
Let's take a look at the relevant data of early repayment of loans under the repayment law of average capital.
According to the statement that "the average capital is the most cost-effective in the fifth year of 20 years", in addition to the so-called "the most cost-effective" fifth year, we also select the beginning of the third year, the beginning of the ninth year and the beginning of 17 as the repayment time points to observe the changes of repayment funds in advance at different time nodes.
As shown in the following figure, through calculation, a loan of 6,543.8+0,000 yuan with a term of 20 years and an annual interest rate of 6% is repaid with the same principal. If all the remaining loans are paid off in advance in the third year, the fifth year, the ninth year and the beginning of 17, the expenses will be reduced by 488,300 yuan and 38.60 yuan respectively.
Paying off the loan in advance can actually save such a large sum of money. Do you think it is "cost-effective"? Don't worry, let's look at another form.
As shown in the above figure, the loan principal with an annual interest rate of 6% and a loan term of 20 years is 654,380,000 yuan, which is repaid with average capital in the early stage. The remaining principal at the beginning of the third year, the fifth year, the ninth year and the 654,387+year is 900,000 yuan, 800,000 yuan, 600,000 yuan and 200,000 yuan respectively.
If the remaining principal is not repaid, the buyer will continue to pay interest to the bank in the next contract period according to the repayment method of average capital. The current interest calculation method is "monthly interest payable = monthly remaining principal × monthly interest rate of 0.5%".
Similarly, by subdividing the repayment amount of each installment, it can be calculated that the total interest payable from the above four time nodes until the repayment is completed on schedule is 488,300 yuan, 386,000 yuan, 265,438+0.75 million yuan and 24,500 yuan respectively.
Are these four numbers familiar? Yes, it is consistent with the amount of money saved by paying off the loan in advance.
Will this happen under the method of equal principal and interest repayment? Then look down.
Under the repayment method of equal principal and interest, we also selected the so-called "most cost-effective" sixth year, the second year before and after it, 1 1 year, 16 year, and calculated the capital cost required to pay off the loan in advance at these four different time nodes.
As shown in the following figure, the loan is 6,543,800 yuan, with a term of 20 years and an annual interest rate of 6%, with equal repayment of principal and interest. If all the remaining loans are paid off in advance at the beginning of the second year, the sixth year, 1 1 year and1year, the expenses will be reduced by 66.5% respectively.
Look at the picture below. The loan principal is 6,543,800,000 yuan, the annual interest rate is 6%, the loan term is 20 years, and the principal and interest are repaid in the early stage. At the beginning of the second year, the sixth year, the beginning of 654.38+065.438+0 and the beginning of 654.38+06, the remaining principal was 973,300 yuan and 849,000 yuan respectively.
Similarly, if the remaining principal is not paid back, the buyer will continue to pay interest to the bank according to the repayment method of equal principal and interest, with monthly interest payable = monthly remaining principal × monthly interest rate of 0.5%, and the corresponding future total interest payable is 660,200 yuan, 440,600 yuan, 265,438 yuan+0.44 million yuan and 59,300 yuan respectively.
Have you found that these four figures are also in line with the above-mentioned amount of spending less than scheduled after paying off the loan in advance?
Through the analysis of the above examples, we can clearly see the fact that whenever the loan is paid off, the "saved" interest is actually only the sum of the interest payable on the remaining principal in the future, which is exactly the same as the interest you need to bear when refinancing a loan with the same amount.
This conclusion is also applicable to understanding the essence of "popular science" such as "paying off the average capital in the seventh year of 30 years" and "paying off the equal principal and interest in the eighth year of 30 years".
Therefore, whether to repay in advance is only related to one's own funds and return on investment, and has nothing to do with repayment method and repayment time-only "the most suitable" and not "the most cost-effective".
The manager also revealed that since the beginning of this year, many customers have changed their repayment methods, that is, the average capital has changed the principal and interest to the same amount, or the average capital has changed the principal and interest to the same amount. "In the past, it was easier to change small amounts, but now large amounts are generally not changed. If customers are under great repayment pressure, they should also be properly' stuck' to control risks. Unless the customer provides income distribution water, there is sufficient repayment guarantee. "
He said that there are two options for customers who repay part of their loans in advance, as shown in the following figure:
"There is no right or wrong between A and B, it depends on your own situation." He concluded.
It can be seen that whether the average capital repays the principal and interest in advance depends on its own situation and the amount of idle funds, and does not depend on the repayment method or the length of time that has been repaid.
Beware: consumer loans instead of mortgages?
Beware of bank payment in advance.
"Hello, I am the direct loan manager of the bank. We are here to lower the interest rate of housing loans to the loan interest rate, that is, to lower the previous annualized interest rate. This is the loan line for you. Do you need it here? " Have you received a similar call recently?
As prepayment becomes more and more popular, there are many operation modes such as "loan replacement" and "lending", and other businesses in this "industrial chain", such as credit intermediaries, are getting busier and busier.
According to the manager, taking the above table as an example, if the mortgage loan is 30 years, the amount is 6,543,800 yuan, and the interest rate is 5.88%, and the repayment method is equal principal and interest, the interest rate will be reduced to 3.85% after being converted into a 20-year mortgage loan, and the total interest will be reduced by 695,200 yuan when the monthly payment is not much different.
In terms of the specific process, "transfer the loan, first advance the capital, turn it into the full amount, and then mortgage it to the bank, so that your 30-year life will become 20 years, and the annualized interest rate can be reduced to 3.7%." He introduced.
The processing cycle takes about one and a half months. "If you want to use more money, you can lend it out, and the interest rate is so low." He added that it would be impossible if interest rates rose again. As long as it is done, the interest rate will be fixed.
According to the credit intermediary, it has "deep" cooperation with banks. So will the bank really cooperate with them? Is the process formal?
"To have a whole house, a credit intermediary company has a formal business license. It is not that simple. " He said that for banks, business is a formal channel.
What is puzzling is, is there really such a good thing as giving money for nothing? How to calculate the cost of capital?
From housing mortgage loan to mortgage loan, the conversion of loan varieties is called "lending".
From the perspective of prudent operation, such operations may have certain compliance risks. In addition, a problem that buyers need to pay attention to is "maturity mismatch".
According to the introduction of credit intermediary, after "refinancing", the term of mortgage loan can be as long as 20 years. In this way, the loan period is from 30 to 20 years, and the monthly supply will not fluctuate too much because of the lower interest rate.
"Generally speaking, the term of real estate mortgage loan is 1 year and 5 years, and the maximum is 10 year, less than 20 years." The aforementioned bank personal loan manager said.
Take the mortgage loan amount of 6,543,800 yuan and the interest rate of 3.85% as an example:
If the term is 5 years, the monthly payment will be as high as 18348.9 1 yuan (equal principal and interest). Even if the term is 10 year, the monthly payment will reach 10053.38 yuan. Compared with the monthly payment of 30 years, it has almost doubled.
This shows that:
If the term is greatly shortened, the monthly payment pressure borne by the borrower will increase exponentially, which will bring severe challenges to short-term cash flow. If it exceeds the tolerance range, it will also invisibly expand the risk of "supply failure".
In addition to housing mortgage loans, there is another saying that consumer loans and commercial loans are used to "replace" mortgages.
In addition to the repayment pressure caused by the above-mentioned maturity mismatch, the lender also faces more serious compliance risks.
Consumer loans are not allowed to replace mortgage loans. "The use of consumer loans should comply with the macro-policy provisions and should not be invested in prohibited areas, such as the real estate market and the stock market." He further explained that in the on-site inspection of banks, grasping the purpose of loans can characterize the non-compliance behavior.
If the use agreed in the loan contract is violated, the bank may take measures such as early recovery of the loan, and the borrower will face extremely unfavorable conditions.
Therefore, for credit intermediaries and all kinds of loans to "lend" and "replace" mortgages, buyers should keep their eyes open, apply for and return loans under the premise of legal compliance, be vigilant about all kinds of marketing information, and don't be biased, pay a huge price for the information gap, bear the pressure of monthly payment beyond the scope, and even risk being "loaned".
Introduction: Repay the loan in advance.
How to collect the liquidated damages?
Some time ago, a bank issued a notice saying that the prepayment should be compensated, accounting for 1% of the prepayment principal. Although the bank quickly withdrew this announcement, on the online platform, there are endless discussions about whether to charge liquidated damages and charging standards for early repayment.
● The business manager of a branch of CCB said:
There is no handling fee and penalty for prepayment. The specific process is as follows: first, open an application form in a loan center, and then pay back at the counter. However, it should be noted that mobile banking currently does not support operations.
● The personal finance manager of a branch of Bank of China said:
There are three kinds of liquidated damages for early repayment: no charge, interest for half a year, or five thousandths of the loan amount. It depends on the contract, which is consistent with the background system.
● The personal loan manager of a branch of ABC said:
If the housing loan is repaid in advance within three years, a penalty of 1% of the repayment amount will be charged. If the repayment is over three years, there is no charge.
● The staff of a branch of the Postal Savings Bank said:
I need to apply in writing to the sub-branch mortgage center with my ID card. There will be no penalty interest after one year of repayment. Similarly, there are also Bank of Communications that determine whether to collect liquidated damages based on one year.
Hengfeng bank official website's "residential mortgage" shows:
If the loan is issued for more than one year (inclusive), no penalty will be charged. If the loan is repaid in advance within one year, 1% of the prepayment amount will be charged as penalty.
Since August 5, 2023, retail loan customers have no penalty interest for prepayment. For what has been agreed in the previous contract, the branch will give customers relief in actual implementation.
If part of the prepayment is settled in advance within 12 months (inclusive) after the individual housing loan is issued, a penalty of 5% of the prepayment amount will be charged; If the loan time exceeds 12 months to 60 months (inclusive), a penalty of 3% of the prepayment amount will be charged; After the loan time exceeds 60 months, no penalty will be charged.
When the voice of "repaying the loan in advance" is getting louder and louder, and you have some spare money on your back, have you also begun to take the initiative to reduce leverage?
Looking through various repayment strategies on the Internet, collecting disposable cash in the account, listing various repayment schemes, and taking out a calculator for intense calculation, I finally found that the most difficult part is often not how to find the optimal solution, but how to make a choice.
Do you choose to pay off all the mortgages at one time and live a debt-free life completely?
Or choose to pay off part of the mortgage and hold part of the cash at the same time, which will reduce the debt and retain part of the ability to resist risks?
Do you choose to continue to maintain the current monthly payment, or use your spare money to invest or start a business, and strive to outperform the mortgage interest or even get more income?
Or do you choose to use operations such as "lending" to reduce interest expenses through interest spreads and quell the reluctance to "stand guard" at high interest rates?
Behind all kinds of choices are careful calculation, personal mentality and expectations for the future. Of course, we should have a reasonable financial planning based on our family situation.
In short, for many ordinary people, mortgage is undoubtedly the largest sum of family expenses. When the market environment changes, it is a normal instinctive reaction to readjust to a more "cost-effective" state. But before making a choice, we must study it carefully, pay attention to screening and make a good balance. We must not blindly follow the trend, ignoring our own economic affordability and some potential risks, thus falling into a passive position.
Because, in the final analysis, the original intention of "repaying the loan in advance" is to reduce the pressure of "purse", reduce the mental burden, and meet the better life in the future more calmly. It is always right to think too much and see too far.
Vision | handsome collar front
Typesetting | Liao Dan
National business daily
Related questions and answers: The best time for average capital prepayment is one third of the repayment period. For example, the mortgage term is 30 years, and the repayment before 10 is the most cost-effective. If the average capital method is used to repay the loan in advance, the interest in the later period can be avoided because of the large proportion of the principal repaid in the earlier period. Average capital divides the total loan into equal parts during the repayment period, and repays the same amount of principal and the interest generated by the remaining loans in that month every month. The monthly repayment amount is fixed and the interest is getting less and less. Matching principal repayment can quickly reduce the repayment pressure and reduce the money that buyers spend on interest, but the early repayment amount is high, so many people will choose matching principal and interest. The advantages of 1. equal principal repayment are as follows: 1. With the reduction of repayment period, the repayment of equal principal will also decrease, the interest in the later period will be less and less, and the repayment burden will be reduced month by month. 2. In the case of the same loan amount and loan life, compared with the repayment method of equal principal and interest, if you choose the right time to repay in advance, you have already paid back a lot of principal in the early stage, and you can save a lot of interest expenses with the reduction of principal in the later stage. Second, the characteristics of average capital's repayment method and the calculation of average capital method are characterized by different monthly repayment amounts, showing a state of decreasing month by month; It divides the loan principal equally according to the total repayment months, plus the interest of the remaining principal in the previous period, thus forming the monthly repayment amount. Therefore, the average capital method has the largest repayment amount in the first month, and then decreases month by month, and the less the more, the calculation formula is: monthly principal and interest repayment amount = (principal/repayment months)+(principal-accumulated repaid principal) × monthly interest rate; Monthly principal = total principal/repayment months; Monthly interest = (principal-accumulated principal repayment) × monthly interest rate; Total repayment interest = (repayment months+1)* loan amount * monthly interest rate/2; Total repayment amount = (repayment months+1)* loan amount * monthly interest rate /2+ loan amount. Note: In the average capital method, the amount of principal returned by a person every month is always the same, and the interest decreases with the decrease of the remaining principal, so the monthly repayment amount gradually decreases.