More and more bank clients now choose to pay their mortgages in advance. On the Internet, there was also a very lively discussion of early repayments, and there were many early repayments from banks. Why, then, did people choose to repay their mortgages in advance? The main reasons are the following:

Why did you choose to pay your mortgage earlier? That's why

First, to save interest. If the loan is repaid in advance, the interest will only be calculated until the date of repayment; if part of the loan is repaid, the subsequent interest will be calculated on the basis of the remaining loan line, rather than the total amount of the original loan. This would result in a significant savings in interest costs。

Second, the return on investment finance has recently declined. The prices of equities and funds have fallen significantly, and even some robust bank items have suffered losses. As the return on investment declined significantly, many users chose to use funds for early repayment to reduce interest expenditure。

The third is the issue of higher interest rates on housing stock. Interest rates on loan market quotations have been reduced several times, and the Central Bank has lowered the base rate for loans, which benefits new home buyers. However, users who have already loaned their homes also carry a heavy interest burden due to higher interest rates on previous loans. As a result, early repayments became an effective measure for them to reduce interest expenditures。

Finally, there are those who seek to own the whole house at an early date. The term of the mortgage is usually 20 to 30 years, during which many people are reluctant to carry the debt if economic conditions improve and idle funds become available. They will choose to pay off their mortgages in advance, so that they can go to the Housing Authority as soon as possible to cancel the mortgage and obtain a full property certificate。

These are some of the core reasons why many users choose to pay their mortgages early. Users could choose between repayment modalities on the basis of their own realities, and it would be useful to keep the repayments in full and on time. Above all, it is important to avoid undesirable acts, such as delays, and to maintain personal credit。

In addition, when applying for loans, it is necessary to take into account its needs and ability to repay, and not to borrow blindly, so as not to end up unable to repay, with serious consequences。