3-year cycle: repeat the operation for three years according to the above 1 year.
Three-year matching principal and interest: the interest and principal of the loan for three years are repaid equally every month.
1, the average capital is to make the principal of each repayment equal, because there are more principal to be repaid in the early stage and less interest to be repaid in the later stage, so there are more interests to be repaid in the early stage and less interest to be repaid in the later stage. With the reduction of the principal owed, the interest to be repaid is gradually decreasing. This way of repayment, the pressure of early repayment is greater.
2. Matching principal and interest means adding the principal and interest of each repayment period to make the total repayment amount of each repayment period equal. In this way, the principal paid in the early stage is less, and the principal paid in the later stage is more. The advantage of this repayment method is that the long-term repayment pressure remains unchanged, but the long-term unpaid principal generates more interest.
3. Pay the interest first, then the principal, that is, pay the interest first and then all the principal in each period. Compared with the first two methods, this repayment method has the least repayment pressure in the early stage, but the final repayment amount has increased sharply, so it is the most risky for financial institutions. For the repayer, the interest to be repaid is the most. Generally, this only applies to business liquidity, and short-term loans are better.
4. Pay the principal first and then the interest: that is, pay the principal first and finally pay all the interest. Ordinary borrowers will not agree to use this method.
To sum up, the average capital pays the least interest, followed by the equal principal and interest, so the average capital is preferred when borrowing. Extended data:
Which repayment method is more cost-effective:
For example, the house is mortgaged for the first time. The loan amount is RMB 4,000,000.00 Yuan, the term is 1 year, and the loan is repaid on a monthly basis with a monthly interest rate of 0.9%.
Most online repayment formulas are calculated according to the annualized interest rate. So ask for the annualized interest rate first:
That is, (1+0.9%) minus 1, the annualized interest rate is 1 1.35%.
1, average capital _
Repay 37 1 1,000 yuan in the first month, then reduce the repayment amount by 3 1 1,527 yuan every month, and pay a total of 245,900 yuan in interest.
2. average capital and interest _
The monthly repayment amount is equal to 354,000 yuan, and the total interest paid is 250,000 yuan.
3. Interest before capital _
The amount paid each month is equal, with only 37,800 yuan of interest, but a total of 454,000 yuan of interest has been paid. For the last repayment, all the principal and the last interest shall be paid * * * 4,037,800 yuan.
It can be seen that the average capital pays the least interest, followed by the equal principal and interest. One year later, the interest rates of the two are not much different, both of which are around 250 thousand. The repayment method of interest first and principal later has a total interest of more than 450,000 yuan, which is close to twice the average capital interest! If the repayment period is extended to three years, it will be even more uneconomical to repay the interest first and then.