In the seventh year, the average capital neutral price is relatively high. In the process of repayment, the principal remains unchanged, the interest decreases month by month, and the monthly repayment amount decreases. Compared with the equal principal and interest, the total interest expense in the average capital is lower, but the principal and interest paid in the early stage are more, and the repayment burden decreases month by month. In terms of average capital prepayment, whether it is cost-effective to prepay in the seventh year mainly depends on the specific term of the loan. If the repayment period of the matching principal has passed 1/3, because the average capital divides the total loan amount by the cost, the repayment interest is calculated according to the remaining principal. Therefore, the later the principal amount, the less the remaining principal, so the less interest 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. If the repayment period is less than 1/3, for example, the loan is 30 years, then the repayment in the seventh year is cost-effective in terms of average capital; However, if the repayment period has exceeded 1/3, such as the loan for 20 years, then this time is not very cost-effective.

Second, it is cost-effective to pay off the mortgage for 20 years a few years in advance.

If the customer wants to repay the mortgage in advance after 20 years, it is suggested that it will be more cost-effective to repay the mortgage in advance within the first third of the repayment period (that is, the first seven years). Because, like the matching principal and interest repayment method, although the monthly repayment amount is the same during the whole repayment period, the proportion of principal and interest in the monthly payment has been constantly changing. With the gradual repayment of customers, the proportion of interest will become smaller and smaller, and the proportion of principal will gradually increase (basically from the sixth year, the proportion of interest in the monthly mortgage payment for 20 years will begin to be smaller than the principal). Therefore, if you don't repay in advance in the early stage of repayment, the interest will almost be paid off in the late stage of repayment, and even if you repay in advance, you won't get much interest relief. The repayment method in average capital is similar. After all, interest is getting less and less. It would be better to repay in advance naturally. If the customer has sufficient funds, he can also choose to pay off the mortgage in advance in one lump sum, so that the interest will only be calculated until the day of prepayment. 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 divides the total loan into equal parts during the repayment period, and repays the same amount of principal and the interest generated by the remaining loans in that month every month. Monthly repayment amount = (loan principal/repayment months) (principal-accumulated amount of repaid principal) × monthly interest rate Features: As the monthly repayment amount is fixed, the interest is getting less and less, and the lender is under great repayment pressure at first, but with the passage of time, the monthly repayment amount is getting less and less. During the repayment period of equal principal and interest, the same amount of loans (including principal and interest) will be repaid every month. Monthly repayment amount = [loan principal × monthly interest rate ×( 1 interest rate) × repayment months]; [( 1 interest rate) × repayment months-1] Features: Compared with the average principal repayment method, the disadvantage is that more interest is paid, and the interest in the initial repayment period accounts for most of the monthly contributions, and the principal in the contributions is gradually repaid with the principal. 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.

3. Which year is the most cost-effective to pay off the average capital in 20 years?

It is the most cost-effective to pay off the average capital in 20 years from the fifth year.

1. Take a loan of 300,000 yuan with a term of 20 years as an example. From the sixth year of the repayment period, that is, the repayment period has reached 1/4. In the composition of monthly payment, the principal begins to exceed the interest. If the loan is repaid in advance at this time, the repayment part is actually more of the principal, then the effective interest savings will not be utilized.

2. The influence of inflation on the term of mortgage loan. The higher the inflation level, the longer the loan term, which means more cost-effective. With the rise of prices, the current 6.5438+0 million may only be worth 6.5438+0 million in ten years. In this case, the longer the loan term, the better.

For ordinary consumers, housing loan is an important part of daily expenses, and monthly payment often accounts for 30%-50% of monthly income. In the case of frequent interest rate hikes, the pressure of some "house slaves" began to increase, eager to repay the loan in advance. Although frequent interest rate hikes have accumulated a lot of interest, it is not appropriate for consumers with limited economic capacity to disrupt the original financial planning. At the same time, the use of emergency funds will increase the risk of future life, and it is possible to "lose big because of small".

Four, the average capital of 20 years and the matching principal and interest 15 years, all paid off in 10 years, which is cost-effective?

Hello,

There are two types of loans: average capital and equal principal and interest.

The average capital decreases month by month. At first, the loan principal was relatively large.

Matching principal and interest means that the repayment amount is the same every month.

When the loan amount is fixed and the loan time is the same, the principal saves a lot of interest than the principal and interest.

The average capital is more suitable for prepayment,

Therefore, it is recommended that you use the repayment method in the average capital.

In addition, the shorter the loan term, the less interest will be paid.

30-year repayment interest is more,

Because you plan to pay off within 10 years, it is suggested to shorten the loan time.

And repay the principal of the commercial loan first.

I hope I can help you.