China-Singapore Jingwei, May 8 (Wei Wei) Zhang Ying, who has just turned 30, recently made an important decision to repay the 460,000 yuan mortgage in advance and shorten the repayment period.

  After repaying the loan, Zhang Ying only had 10,000 or 20,000 yuan left for emergency, but she did not regret it.

Instead, she considers her decision to be very wise.

She looked at the remaining repayment amount on the bank's APP and said, "It can save more than 600,000 yuan in interest in total, just like I made so much money."

  Zhang Ying's decision is not an exception.

On platforms such as Xiaohongshu and Douyin, many people are sharing their experience of repaying mortgages early. In their opinion, repaying loans early can save a lot of interest.

More importantly, with the stock market and funds falling, financial management falling below the "net worth", and interest rates on bank time deposit products falling, they have nowhere to put their money, and early repayment seems to be a better option.

"I feel like I made 6 points all at once"

  Zhang Ying's inspiration came from the sharing of netizens on social platforms, "I knew that I could repay the loan early, but I always thought that I would have to pay liquidated damages. Later, I always read posts about repaying the mortgage early, so I tried it out. It’s so easy to think about.”

  Mortgage is a big mountain for young people.

Zhang Ying, like many others, worked hard in Beijing with her husband after marriage, and saved money for several years. With the support of her family, she purchased a property in Beijing two years ago. 20,000 yuan mortgage.

  In the past two years, stock prices and funds have suffered losses across the board, and financial management has also fallen below the net value.

Zhang Ying watched the money in her hand shrink gradually, and finally couldn't sit still.

Originally, she was still struggling. After saving the money for a few more years, she could buy a small house in a remote place, but then she thought that this amount of money was not enough. It would be better to pay off the mortgage in advance.

  After she made up her mind, she sold all the stocks and funds in her hands, paid 460,000 yuan directly on the mobile app, and shortened the repayment period from 21 years to 15 years.

She roughly calculated that the 2.4 million yuan commercial loan originally required nearly 1.8 million yuan in interest. After repaying the loan early, more than 600,000 yuan in interest could be saved.

  "I feel like I made nearly 6 points at once." After repaying the loan early, Zhang Ying set herself another goal, to pay off the mortgage before the age of 40.

  But achieving this goal is not easy.

Today, she still has more than 2.9 million yuan in principal and interest on her mortgage, which means that she has to save at least nearly 300,000 yuan every year.

Her child is about to go to kindergarten, there are still many places to spend money, and she is not confident enough to realize it, "ideas are one thing, plans are one thing, reality is another thing, first move towards goal effort."

  When many people take out a loan to buy a house, they already plan to "pay off the loan early".

In 2015, three years after graduating from university, Xiao Xiao bought a 130-square-meter property in Zhengzhou City, Henan Province, with a total price of more than 800,000 yuan, a loan of more than 500,000 yuan, and a monthly payment of more than 3,000 yuan.

  "At that time, the mortgage interest rate was nearly 5%. I found that the monthly principal and interest repayments were about the same, which means that more than half of the loan was used to repay the interest." After the loan was taken, Xiao Xiao was determined to repay the mortgage early.

  She calculated an account, her monthly payment is more than 3,000 yuan, and she needs to rent a house when the house is not handed over. The rent is more than 2,000 yuan, and the expenses such as meals and transportation need more than 2,000 yuan, and the minimum monthly expenditure is 7,000 yuan. In terms of "high pressure".

But after keeping the necessary expenses every month, she will save the remaining funds and save money to repay early.

  In 2018, Xiao Xiao repaid 160,000 yuan for the first time. In 2021, she repaid 110,000 yuan again. Recently, she finally paid off the remaining nearly 140,000 yuan of loans completely.

  "It feels so good to be light without a loan!" This is a true portrayal of her repayment. She posted a commemorative post on social media, but she did not expect to gain nearly 2,000 page views, and many strange netizens left messages to congratulate her.

She is no longer worried about the debt risk after "laying flat", "in the future, you don't need to look forward to spending money."

Can you beat mortgage rates?

  Home loans used to be regarded by many as the largest, cheapest and longest term funds that can be borrowed.

Many people who have money in their hands are not in a hurry to repay the mortgage, but instead take the money to invest.

  Some netizens shared their own experiences, "In 2016, I had a mortgage of 900,000 yuan and 400,000 yuan in cash, but I did not choose to repay the loan in advance, but went to Hangzhou as a down payment to buy another house, and sold Hangzhou in 2019. The house earned 2 million. If the loan is repaid in advance, there is no back story." The netizen said.

  But Yang Ming, who works in Beijing, is not so lucky.

"The interest rate of my first home loan was 4.95%. At that time, the annualized rate of return of P2P was 8% or even more than 10%. If you invest money, you can make more money!" Fortunately, all the funds were withdrawn before the thunderstorm.

  Also in 2016, looking at the skyrocketing house prices, Yang Ming did not repay the loan in advance, but instead bought a house in Tianjin, where house prices were low at the time. The total price was about 1.3 million yuan, and the down payment was only 20%. In the six months after the purchase, the houses of the same type in the community were once sold for more than 2 million yuan.

  The story behind caught him by surprise. With the implementation of the purchase and loan restriction policies in various places in 2017, the house he bought also entered the downward channel. Now the latest transaction price of the community has dropped to more than 1.1 million, which is not as good as five years ago. price.

Today, he is carrying two mortgages and regrets it.

  In addition to the property, the person holding the cash suddenly found that the money in his hand had nowhere to put it.

Zhang Ying said bluntly, "My mortgage interest rate was 5.88% before, but recently it was adjusted to 5.73%, which is too high. Now I can't see any investment avenues that can beat the mortgage interest rate."

  The once-popular P2P has been shunned by people. The stock market has been falling and falling, fund yields have retreated, financial management has fallen below "net value", and even the interest rates of bank time deposits and large-denomination certificates of deposit, which have always been the most stable, have also fallen.

Recently, some media reported that the upper limit of the 2-year fixed deposit interest rate of the four major industrial and agricultural banks was lowered to 2.5%.

  "I put money in Yu'ebao, or I go to get some investment and financing, but it may not beat the mortgage interest rate." Xiao Xiao once heard people say that only when you have money in your hands can you beat inflation, but she thinks it is better to advance in advance. Repay the loan, because the interest rate of the deposit bank is still not as high as the mortgage interest rate.

  What makes her even more depressed is that since 2015, her house has only risen from more than 800,000 yuan to 1.1 million yuan, including the repayment of more than 200,000 yuan in loan interest, more than 100,000 yuan in renovation money, and down payment funds in the past six years. In terms of cost, her house can barely be regarded as not losing money, let alone outperforming inflation.

Maybe not for everyone

  Although many people want to pay off their mortgage early, early repayment may not be suitable for everyone at the moment.

Lin Yifan, who also works in Beijing, is a little worried. Recently, she has some spare money, and she has been hesitating whether to repay the loan early.

  At the end of 2019, she purchased a property in a second-tier city with a pure commercial loan of 1.07 million yuan and a monthly payment of more than 6,000 yuan.

"I took a look. The total interest is hundreds of thousands. It's too much, so I want to pay back part of it in advance."

  After having this idea, Lin Yifan quickly got in touch with the account manager of the loan bank, but the other party told her that she needed to go to the local area with her ID card. Because of the recent epidemic, this matter has been delayed.

  In addition to the epidemic, there is another concern in her heart.

"If you pay back a large amount, you won't have much money left in your hand. Now there are old people and young people in the family. If you need money urgently, what should you do if you don't have money by then," she said.

  The idea of ​​early repayment also appeared repeatedly in Wu Xi's mind.

But the recurrence of the epidemic this year has gradually changed her mind, and she cares more about the cash flow in her hands.

  "If you lose your job, you can barely support it for a while with your savings. If you repay the loan early, there will be no way out." Wu Xi decided not to repay the loan for the time being.

  However, she did not completely give up repaying the loan early.

"Whether to repay the loan early or not depends on the individual," Wu Xi said. Although it may not be the right time now, she wants to wait until she saves more money, so she will still repay the loan early. After all, "I don't want to work for the bank for the rest of my life. ".

(Sino-Singapore Jingwei APP)

  (At the request of the interviewee, Zhang Ying, Xiao Xiao, Yang Ming, Lin Yifan and Wu Xi are all pseudonyms in the article)

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