How to calculate the repayment in the middle of the mortgage?
There are two types, one is full prepayment and the other is partial prepayment:
1. Full prepayment means one-time settlement of mortgage principal and interest. After all prepayment, the interest will be calculated from the day when the principal and interest of the bank are paid off. In other words, as long as you borrow from the bank, the interest will be calculated.
2. Partial prepayment means that only a part of the loan principal and interest is repaid, and the remaining principal and interest are not settled. The outstanding loan principal and interest shall be executed according to the loan interest rate agreed in the original loan contract (continued preferential treatment with discount).
3. There are two ways to repay part of the loan balance in advance. One is to shorten the repayment period, and the monthly payment amount is inconvenient; Second, the repayment period remains unchanged, reducing the monthly payment. In contrast, the first one can save more interest.
Borrow 30 years in advance and pay back the loss?
1, provident fund loan to buy a house.
Because the interest rate of provident fund loans is very low, and the ratio of inflation and currency depreciation is higher than this every year, many bankers do not recommend buyers to pay off provident fund loans in advance. If you have a provident fund loan, Bian Xiao does not recommend that you repay the loan in advance.
2. Buy a house with a commercial loan
But what about commercial loans? In fact, if the commercial loan is repaid with equal principal and interest, generally speaking, it is reasonable for the bank staff to suggest paying off the loan within the first third of the total repayment time.
For the buyers whose repayment period of matching principal has passed 1/3, the repayment interest is calculated according to the remaining principal because the total loan amount is divided equally among the average capital. In other words, the later this repayment method is, the less the remaining principal will be, so the less interest will be generated. In this case, when the repayment period exceeds 1/3, the borrower has already paid nearly half of the interest, and the later repayment is mostly the principal, and the interest level has little effect on the repayment amount.
For the buyers who have reached the medium-term repayment of equal principal and interest, the repayment of equal principal and interest is to add up the total principal and interest of mortgage loans and then distribute them evenly to each month. The monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled monthly. In other words, the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month.
The article has given you a detailed introduction on how to calculate the halfway repayment of mortgage and whether the loan will lose money 30 years in advance. I hope it will help you. If you repay the mortgage halfway, you need to follow a certain process. Early repayment is sometimes not necessarily appropriate. Let's calculate first.