How to repay the mortgage of 700,000? Repayment strategies and data analysis that are hotly discussed across the internet
Recently, the topic of mortgage repayment has once again become a hot topic on the Internet. Especially for home buyers with a mortgage of 700,000, how to repay efficiently has become the focus. This article will combine the hot discussions in the past 10 days to provide you with structured data analysis and practical suggestions.
1. Comparison of 700,000 mortgage repayment methods
| Repayment method | Total interest (30-year term) | Monthly payment (equal principal and interest) | Applicable people |
|---|---|---|---|
| Equal principal and interest | About 498,000 | About 3,732 yuan | Stable income earner |
| Equal amount of principal | About 416,000 | 4,806 yuan for the first month (decreasing) | Strong early repayment ability |
| Early repayment (5 years) | About 142,000 | Monthly payment + additional principal | Those with idle funds |
2. The latest hotly discussed repayment techniques
1.biweekly supply method: If you split the monthly payment into repayments every two weeks, you will actually pay one more month of principal throughout the year, which can shorten the repayment cycle by about 5 years.
2.Provident fund offset: New regulations in many places allow monthly withdrawals of provident funds to repay loans, and a loan of 700,000 yuan can be offset by up to 50,000 to 80,000 yuan per year.
3.LPR conversion: The latest LPR in January 2024 is 3.95%, down 0.25% from last year. After conversion, the monthly payment can be reduced by about 100 yuan.
3. Repayment plans for different income groups
| family monthly income | Recommended repayment plan | Expected repayment period |
|---|---|---|
| Below 15,000 | Equal principal and interest + provident fund offset | 25-30 years |
| 15,000-25,000 | Equal amounts of principal + year-end bonus repaid in advance | 15-20 years |
| More than 25,000 | Biweekly payments + additional quarterly payments | 10-12 years |
4. The latest policy on early repayment
Many banks will adjust early repayment rules in 2024:
| bank | liquidated damages policy | Minimum payment |
|---|---|---|
| ICBC | No penalty for repayment after 1 year | Starting from NT$10,000 |
| China Construction Bank | No penalty for repayment after 2 years | Starting from NT$50,000 |
| China Merchants Bank | 0.5% at all times | No amount limit |
5. Expert advice
1.interest rate sensitive period: Currently in an interest rate cut cycle, it is recommended to choose LPR floating interest rate, which can save 30,000 to 50,000 yuan in interest in the long term.
2.inflation hedge: The actual purchasing power of a 700,000 loan will decrease over time, so there is no need to worry too much about long-term liabilities.
3.Investment rate of return comparison: If the income from financial management can exceed the mortgage interest rate (about 4%), give priority to investment rather than early repayment.
6. Risk warning
1. Be wary of the "re-lending and interest rate reduction" trap, as illegal operations by some intermediaries may lead to legal risks.
2. In the context of the unemployment wave, it is recommended that the monthly payment does not exceed 35% of income.
3. As housing prices in third- and fourth-tier cities decline, early repayment may not be as flexible as holding cash.
From the above analysis, it can be seen that the 700,000 mortgage repayment strategy needs to be dynamically adjusted based on personal financial conditions. It is recommended to evaluate the repayment plan every two years and choose the optimal repayment path based on policy changes and personal income growth.
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