Prepayment of which populations the most cost-effective?
prepayment is a lot of history, "thrift and loan costs" borrower Guide to action and philosophy. However, prepayment really save time, achieve the effect of saving it? In fact, this also has a lot of knowledge, a brain if you will return all the rest of the Bank, effective instruction. In order to prevent all Black Dragon event, know more clearly whether they are suitable for early repayment, we summarize the three types suitable for the early repayment of the crowd, you can take it personally.
first, borrowers are more suitable for the early repayment early repayment. In the repayment process, a larger proportion of interest due to the early repayment, principals share is small. Therefore, the early stages of repayment if borrowers choose the prepayment and are often able to save interest on loans. Specifically from the time of the node, select matching principal and interest of the borrower shall not yet halfway through for early repayment of loans, and select equal principal repayment period of not more than 1/3, the early repayment.
Secondly, for borrowers involved in floating interest rate is already very high, with cash in hand, and there is no other good investment channel, can consider making early repayments, future funding requirements will continue to apply for a loan. Conversely, if the borrower have good investment projects, and the expected benefits higher than mortgage interest, is not suitable for early repayment.
Finally, due to their own monthly pressure, borrowers of the housing, must be paid for early repayment.