Inflation? Deflation? Should I pay my mortgage early?
Do you want to prepay your loan? This may be the key point related to whether every family with a house can be happy in the future. The answer is to pay the loan early, regardless of whether the interest rate is 3.8 or 4.3 or 5.3.
Many people may have to say, the previous high interest rates are now correspondingly reduced, and the lowest is 3.8, what more bicycles? In fact, I used to think exactly the same as you, always thinking that inflation will devalue assets. If you use your savings to pay off the loan now, you won't be able to take advantage of it at all later. But now give you a hands-on example, and you'll understand why it's important to prepay your loan.
In 15 years, I bought my current house with a down payment of 210,000 yuan, took out a loan of 520,000 yuan, and paid 2,500 yuan per month. In the next year, a large amount of 100,000 yuan was repaid, and the monthly payment became 2,000. At that time, the interest rate was 4.9, and I was discounted, which was very suitable for the mortgage interest rate of the highest 5.00 in the later period. I think that such a low loan interest rate must not be repaid in advance, and there are more than 300,000 loans.
At that time, the perception was that what was the value of more than 300,000 yuan for more than 20 years? But that was a period of time when house prices were generally rising, and it was only in today's environment that we realized that there would be no better investment channels in the coming days. Because the real estate market also knows that the deposit interest rate has been declining with the mortgage interest rate, but it still needs to pay the bank more than 4 points of interest every month. After depositing the money in the bank, I will be given a maximum of 1.9.
Why don't you go and return it? The reason why the current state of mind has changed is also because the next decade may be a decade of economic transformation. Whether it is inflation or deflation, if you do not have a wealth management product with a higher interest rate than the mortgage and have a certain amount of savings in your hand, you must remember that prepayment of the mortgage is the king. If you pay back the remaining 300,000 yuan, you don't have to pay a monthly payment of 2,000 per month. The annual principal and interest of 20,002 is equivalent to buying a wealth management product that can guarantee principal and interest and is greater than 4.3.
Can you still find a wealth management product with a higher interest rate than the deposit rate? So what's the answer? It should be understood.
