What is the most cost-effective way to repay the mortgage?

Many young people will choose loans to buy a house. In the final analysis, it is because the total house price is too high for young people to bear. Of course, the repayment method of the loan is not simple. In fact, most people choose equal repayment every month, and the repayment amount is roughly the same. With the rise and fall of interest rates, the monthly repayment amount of loans will also fluctuate, but the range will not be too large.

There is also a repayment method, which is less and less. For example, if you borrow it for 20 years, you will still pay 3000 yuan a month. Maybe in the second year, you only need to pay back 2500 yuan per month, so after 10 years, you only need to pay back 1000 yuan per month. This kind of loan method will feel great pressure in the early stage, but it will gradually become easier, so I recommend you to choose the second loan method with the same interest.

Only the second way can reduce our stress. Moreover, the second loan method, because the total amount of money returned from the bank in the early stage is relatively large, if you are ready to settle the balance owed to you by the bank in the later stage, you will bear less interest than the former. Most banks will have such a policy. As a repayment person, we can make a repayment with a large denomination every year, which means that when our personal funds are abundant, we can end this long loan earlier by prepayment.

Therefore, choosing the latter will also have greater benefits for our personal future. I suggest that you do what you can when buying a house, and don't choose those high-end luxury houses and large-scale communities and houses, because the higher the grade, the bigger the house, and the more the total house payment, the more difficult it is to pay back, so you should combine your own actual situation to buy a house.