The monthly repayment amount of this repayment method is gradually reduced by stages, which is suitable for customers who are relatively well-off at present, are expected to be short of funds in the future or have the willingness to repay in advance.
Mortgage repayment methods mainly include: average principal repayment method and equal principal and interest repayment method.
Average capital plus interest
Matching principal and interest refers to a repayment method of housing loan, that is, paying the same amount of loans (including principal and interest) every month during the repayment period, so that because the monthly repayment amount is fixed, 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 monthly repayment amount of equal principal and interest is the same, so it is more suitable for families with normal consumption plans, especially young people. Economic conditions do not allow excessive investment in the early stage. You can choose this way, such as civil servants, teachers and other groups with relatively stable income and job opportunities.
Calculation method of equal principal and interest
Monthly repayment amount = [principal x monthly interest rate x( 1+ monthly interest rate) loan months ]/[( 1+ monthly interest rate) repayment months-1]
Monthly interest = residual principal x monthly loan interest rate
Total repayment interest = loan amount * loan months * monthly interest rate *( 1+ monthly interest rate) loan months /( 1+ monthly interest rate) repayment months-1- loan amount.
Total repayment amount = repayment months * loan amount * monthly interest rate *( 1+ monthly interest rate) loan months /( 1+ monthly interest rate) repayment months-1.
Average capital
Matching principal repayment means that the lender distributes the principal to each month and pays off the interest between the previous trading day and the repayment date. The average capital repayment method refers to a repayment method in which the total loan amount is divided into equal parts during the repayment period, and the same amount of principal and interest generated by the remaining loans in the current month are repaid every month. In this way, because the monthly repayment amount is fixed and the interest is less and less, the lender is under great pressure to repay at first, but with the passage of time, the monthly repayment amount is less and less. It is more suitable for lenders with strong repayment ability some time ago. Of course, some older people are also more suitable for this way, because their income may decrease as they grow older or retire.
Calculation formula of average capital loan:
Monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.
Monthly principal and interest repayment amount = (principal/repayment months)+(principal-accumulated repaid principal) × monthly interest rate.
Monthly principal = total principal/repayment months
Monthly interest = (principal-accumulated principal repayment) × monthly interest rate
Total repayment interest = (repayment months+1)* loan amount * monthly interest rate /2.
Total repayment amount = (repayment months+1)* loan amount * monthly interest rate /2+ loan amount.
Which is better, average capital or equal principal and interest?
Average capital repayment method must pay less interest than matching principal and interest repayment method, and both repayment methods are calculated according to the amount of principal occupied in early repayment to return the corresponding proportion of interest, and the difference between them is not very big. Comparing the two repayment methods, in a sense, the average capital method (decreasing method) is not necessarily better than the matching principal and interest method (matching method), and the choice of repayment method will vary from person to person.