After you apply for a mortgage and bind your bank card and sign an automatic deduction agreement with the bank, the bank system will automatically deduct the money from the loan repayment bank card on the repayment date. Mortgage deductions are usually carried out between 0:00 and 6:00 in the morning. Some banks will deduct around 19:00 in the evening, which may range from 5:00 to 9:00 in the evening. Sometimes there will be delays in special circumstances. Condition.

Mortgage repayment methods and characteristics

1. Repayment of principal and interest in equal amounts

Repayment of principal and interest in equal amounts is also called regular interest payment, that is, the borrower pays monthly interest The loan principal and interest are repaid in equal amounts, where the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month. 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.

With this repayment method, the funds that need to be repaid every month are the same, so everyone’s repayment operation is relatively simple, and it is convenient to arrange income and expenses by bearing the same amount every month.

This method is more suitable for families with a stable income. If you are buying a house to live in, and the economic conditions do not allow too much initial investment, you can also choose this method. However, it also has shortcomings. Since the interest will not be reduced with the repayment of the principal amount, bank funds will be occupied for a long time, and the total repayment interest will be higher than the equal principal repayment method introduced below.

Advantages: Repay the same amount every month. As a lender, the operation is relatively simple. Commitment to the same amount every month also makes it easier to arrange income and expenses.

Disadvantages: Since the interest will not be reduced with the repayment of the principal amount, bank funds will be occupied for a long time, and the total repayment interest will be higher than the equal principal repayment method introduced below.

2. Repayment of the principal in equal amounts

Repayment of the principal in equal amounts is also known as the repayment method of interest followed by the principal and equal principal without interest. 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.

With equal principal repayment, the largest amount of money needs to be repaid in the first month, and then gradually decreases. Therefore, the pressure on repayers in the early stages of the loan is relatively high.

This method is very suitable for people who currently have a high income, but have expected 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 get older, they can choose this method to repay their loans.