Generally speaking, early repayment will incur two parts of fees: one part is the principal and the other part is the liquidated damages. Therefore, early repayment repays the principal and liquidated damages. Different time periods, different repayment methods, and different banks require different amounts of money to be repaid.

1. How to calculate the prepayment of equal amounts of principal and equal amounts of principal and interest?

First of all, we need to understand the difference between equal principal and interest and equal principal. The monthly repayments of equal amounts of principal and interest are the same. The initial repayments are mainly interest, and the subsequent repayments are mainly principal. The monthly repayments of equal principal and interest are the same. The principal repayments in the early stages are larger, and the principal repayments are later. The less gold.

Therefore, if the repayment period is relatively long, most banks only require you to pay off the remaining principal, and usually will not let you pay interest. However, there is a big difference in the remaining principal between equal principal and equal principal and interest repayments in advance. The remaining principal of equal principal and interest will be more, while the further the equal principal is paid, the less principal will remain.

2. Additional liquidated damages will be charged for early repayment in the short term

If the mortgage loan you apply for has a relatively short repayment time, such as within 1 year, in addition to repaying the principal, In addition, most banks will also require additional liquidated damages. In addition, because each bank has different regulations and charging standards for early repayment, the specific calculation should be based on the normal conditions of the bank where the mortgage is located.

Extended information:

Equal repayment of principal and interest, also known as regular interest payment, means that the borrower repays the principal and interest of the loan in equal amounts every month, in which the monthly loan interest is based on the remaining loan at the beginning of the month. The principal is calculated and paid off monthly. Add the total principal and interest of a mortgage and spread it evenly over each month of the repayment term. As a repayer, you pay a fixed amount to the bank every month, but the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month.

Equal principal repayment is also known as the interest-following principal repayment method, and the equal-amount principal repayment method. The lender distributes the principal to each month and pays off the interest between the previous transaction day and the current repayment date. Compared with equal principal and interest, this repayment method has lower total interest expenses, but more principal and interest are paid in the early stage, and the repayment burden decreases month by month. This method is very suitable for people who currently have a high income, but already expect that their income will decrease in the future.

In fact, many people in middle age and above have a certain financial foundation after working hard for a period of time. Considering that their income may decrease due to retirement and other factors as they age, they can choose this kind of method of repayment.

Reference materials: Repayment of principal and interest in equal amounts - Baidu Encyclopedia? Repayment of principal in equal amounts - Baidu Encyclopedia