For a large number of home-buying volunteers, the choice of a loan to buy a house is often a brilliant approach to finance. However, in the face of repayments, you may sometimes face a situation in which you are more well funded and able to repay the loan in advance. You might want to ask, would it cost you more? Will part of the loan advance change interest rates? Let us interpret this from a different angle。

Will the advance repayment rate change

First of all, it is clear that when you choose to pay in advance part of the mortgage, the interest rate does not change. More precisely, the change in the interest rate on the mortgage is not related to the manner in which you repay it, but depends primarily on the terms and conditions of the bank. If you use a fixed interest rate for your mortgage, it remains the same throughout the liability period, regardless of how you repay it. Where mortgages use floating interest rates, like commercial loans are usually adjusted after repricing。

In general, although the change in the interest rate on the mortgage is not directly related to your early repayment, if you repay part of the loan in advance, interest is usually not calculated on the basis of the total amount of the loan, but on the basis of the balance of the principal outstanding after you have paid in advance, thus saving you a sum of interest。

When you choose to use mortgages to buy a house, there are also things to be noticed. First, when you apply for a loan, the size of the loan must take into account your financial capacity, and the amount of the loan must be fixed to avoid an excessive burden. At the same time, appropriate loan terms and repayment modalities should be established in accordance with their economic situation and expectations。

Second, it was also important to select a suitable lending bank. A diverse and detailed bank will provide you with more flexible and personalized financial services. For example, some banks have introduced a range of new service provisions, such as adjustment of loan terms, change of borrower or real estate authority。

Finally, it was also crucial to choose a method best suited to its own repayment. There are now essentially two types of repayments for individual housing loans: equivalent principal and equivalent principal. Equivalent principal repayments are easy to calculate, but interest will be relatively higher and monthly repayments of Equivalent principal will decrease over time。