Expand knowledge:
I. Mortgage repayment method
brief introduction
There are two repayment methods for housing loans with a loan term of more than one year: average capital repayment method and matching principal and interest repayment method.
Average capital
It is to divide the total loan into equal parts during the repayment period, and repay the equal principal and interest generated by the remaining loans in the current month every month.
Monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.
Features: Because the monthly repayment amount is fixed and the interest is getting less and less, the lender is under great pressure to repay at first, but with the passage of time, the monthly repayment amount is getting less and less.
Average capital plus interest
During the repayment period, the same amount of loans (including principal and interest) will be repaid every month.
Monthly repayment amount = [loan principal × monthly interest rate ×( 1+ monthly interest rate )× repayment months ]≤[( 1+ monthly interest rate )× repayment months]
Features: Compared with the repayment method in average capital, the disadvantage is that there are more interests. The interest in the initial repayment period accounts for most of the monthly contributions. With the gradual return of the principal, the proportion of the principal in the contributions increases. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way and facilitate each family to determine the repayment ability according to their own income.
Whether it is equal principal and interest repayment method or average capital repayment method, the nature of interest will not change. Generally speaking, matching the principal and interest will pay a little more interest than the average capital. . But the premise is that the loan period is sufficient. It seems that the bank has recovered the interest, but in fact, with the reduction of the principal, the average capital repayment method can speed up the repayment, withdraw the funds as soon as possible, reduce the operating cost and help reduce the risk coefficient. In the actual operation process, the matching of principal and interest is more conducive to the borrower to master and facilitate repayment. . In fact, after comparison, most borrowers still choose the method of matching principal and interest, because this method has a fixed monthly repayment amount, is easy to remember, and the repayment pressure is balanced, which is actually not much different from the average capital. Because these borrowers also see that the use value of funds varies with time, simply put, the repayment method of equal principal and interest is to pay more interest because of long-term occupation of the bank's principal; The repayment method of equal principal takes up the bank principal for a short time, and the interest will naturally decrease. There is no problem that banks lose money and earn more interest. The two repayment methods are essentially the same, and there is no distinction between advantages and disadvantages. Only when the demand is different can there be different choices. Because the repayment pressure of equal principal and interest is balanced, but it needs to pay more interest, which is suitable for people who have some savings, but their income may be flat or declining, and their living burden is increasing day by day, and they have no plans to repay in advance. In the average capital repayment method, because the borrower can repay the principal faster, it can pay less interest, but the amount of repayment in advance is larger, which is more favorable because it is suitable for people with higher income at present, or those who expect a substantial increase in income in the near future and are ready to repay in advance.
Second, the mortgage matters needing attention
Timely repayment of mortgage loans
The principle of good faith is an imperial clause in civil activities, and it is also a clause that we must abide by when performing the contract. As the parties to the mortgage contract, it is our obligation to repay in full and on time according to the conditions stipulated in the contract. Now the country has realized the inter-bank credit system. If you don't repay in time, it will be blacklisted in the bank's credit information system, which will affect your future business in the bank, so each of us should repay in time according to the contract.
Choose the repayment method carefully
In general, the mortgage loan contract is a standard clause contract, and there are generally two repayment methods. One is the equal principal and interest repayment method, that is, the same amount of loans (including principal and interest) are repaid every month during the repayment period, so that the monthly repayment amount is fixed, so that the expenditure of family income can be controlled in a planned way, and it is also convenient for each family to determine the repayment ability according to their own income. The other is average capital's repayment method: repay the principal in equal amount every month, and then calculate the interest according to the remaining principal, so you will pay more interest at the beginning, so the repayment amount will be more at the beginning, and then it will be reduced every month in the following time. The advantage of this method is that because the initial repayment amount is large, the interest expense will be reduced, which is more suitable for families with strong repayment ability. When signing a loan contract, you can choose the repayment method according to your actual situation to avoid default.
Rational use of housing provident fund
Housing accumulation fund is a long-term housing deposit paid by units and their employees, and it is the main form of monetization, socialization and legalization of housing distribution. The housing accumulation fund system is an important social security system for housing stipulated by national laws, which is mandatory, mutually supportive and guaranteed. Units and individual employees must fulfill their obligations to pay housing provident fund according to law. One advantage of housing provident fund is that it is lower than the loan interest of commercial banks. If your unit pays you the housing provident fund, you can use the housing provident fund loan to repay the mortgage, which can not only reduce your monthly repayment pressure, but also reduce the total expenditure of using the housing provident fund loan relative to the total repayment amount of commercial banks.
Reasonably determine the loan term.
Mortgage loan contracts generally have clauses on early repayment, and early repayment must be approved by the bank, because early repayment will have an impact on the long-term income of the bank. In real life, banks usually charge liquidated damages for prepayment. Of course, different banks will have different policies. Therefore, when signing a mortgage contract, buyers should choose a reasonable loan term according to their actual situation, so as to avoid unnecessary losses caused by early repayment.