The meaning of equal principal repayment
The so-called average capital repayment method, also known as the repayment method of interest with principal and average capital with unequal interest. The lender will allocate the principal to each month and pay off the interest from the previous trading day to the repayment date. Compared with the matching principal and interest, the total interest cost of this repayment method is lower, but the principal and interest paid in the early stage are more, and the repayment burden is reduced month by month.
For example, we also borrowed 200,000 yuan from the bank, and the repayment period was 15 years. If you choose to repay the same principal, you need to repay the bank principal11yuan every month, and the interest in the first month is 9 18 yuan, totaling 2,200 yuan in the first month. Then, every month,
Average capital repayment method is a very simple and practical repayment method. The principle of the basic algorithm is to repay the loan principal in equal amount on schedule during the repayment period, and at the same time pay off the interest generated by the unpaid principal in the current period. Repayment methods can be monthly repayment and quarterly repayment. Due to the requirement of bank interest settlement practice, quarterly repayment is generally adopted (such as China Bank).
For equal principal repayment, the burden at the beginning of the month is heavier than the equal principal and interest. Especially when the total loan amount is relatively large, the difference may reach 1000 yuan. But with the passage of time, the repayment burden is gradually reduced. This method is very suitable for people with high income at present, but it is predicted that their income will decrease in the future. In fact, many people over middle age, after a period of efforts, have a certain economic foundation. Considering that your income may decrease with retirement and other factors, you can choose this way to repay.
Because the monthly repayment of the principal is fixed and the monthly loan interest decreases with the decrease of the principal balance, the average capital repayment method has a large monthly repayment amount at the initial stage of the loan, and then decreases month by month (monthly repayment amount = monthly repayment of the principal? Monthly interest rate). For example, 654.38 million yuan, 15-year provident fund loan, the monthly repayment amount of the equal repayment method is 760.40 yuan, while the first month repayment amount of the average capital repayment method is 923.06 yuan (a decrease of 2.04 yuan per month), which is higher than the former 163.34 yuan. Because the latter repaid part of the loan principal in advance, it actually reduced the occupation and shortened the occupation of the bank's money. Of course, the loan interest is generally small (10 is 36 13.55 yuan), which does not mean that the borrower has gained any additional benefits!
This repayment method is suitable for people whose living burden will be heavier and heavier (pension, medical care, children going to school, etc.). ) or income is expected to decrease gradually.
It can be seen that the repayment method in average capital is not an option to save interest. If there is really a good way to save interest, it is to learn to spend rationally, according to one's own economic strength, to live within one's means, to borrow as little as possible and to borrow short money. This is the only feasible way.
Average capital repayment method and its calculation formula
Quarterly repayment amount = loan principal? Quarter+of loan term (principal-accumulated principal repayment amount)? Seasonal interest rate
For example, take the loan of 200,000 yuan and the loan term of 10 year as an example:
Repay the principal in equal amount every quarter: 200,000 yuan? ( 10? 4)=5000 yuan
Interest in the first quarter: 200,000? (5.58%? 4)=2790 yuan
The repayment amount in the first quarter is 5000+2790=7790 yuan;
Interest in the second quarter: (200000-5000? 1)? (5.58%? 4)=2720 yuan
The repayment amount in the second quarter is 5000+2720=7720 yuan;
Section 40 Interest: (200000-5000? 39)? (5.58%? 4)=69.75 yuan
Then the repayment amount in the 40th quarter (the last period) is 5000+69.75=5069.75 yuan.
It can be seen that with the continuous repayment of the principal, the interest on the unpaid principal in the later period is less and less, and the repayment amount in each quarter is gradually reduced. This method is more suitable for borrowers who already have some savings, but their expected income may gradually decrease, such as middle-aged and elderly workers' families, who have some savings, but their retirement income will decrease in the future.
This method was introduced in June 1999 1 and is being gradually adopted by banks.
The difference between average capital repayment method and equal principal and interest repayment method
The repayment method of equal principal is to repay the principal in equal amount every month, and then calculate the interest according to the remaining principal. Therefore, due to the large amount of principal in the early stage, the interest paid will be more, so the amount of repayment in the early stage will be more, and then it will be reduced every month. The advantage of this method is that it is more suitable for families with strong repayment ability.
Matching principal and interest repayment method is to repay 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.
Matching principal and interest repayment: suitable for groups with stable income.
According to insiders, at present, the most repayment method handled by banks is equal principal and interest repayment. This repayment method is to add up the total principal and interest of the mortgage loan, and then share it equally every month during the repayment period. As a repayment, he pays 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.
For example, suppose you need to borrow 200,000 yuan from a bank with a repayment period of 20 years. According to the current interest rates of most banks, the method of matching principal and interest is chosen, and the monthly repayment is about 1376.9 yuan. The total repayment amount is 330,000 yuan, of which the interest payment is 6,543,800 yuan+3,000 yuan.
In this regard, bank financial experts analyzed that matching the principal and interest to repay the mortgage is convenient for arranging income and expenditure, and the borrower bears the same amount every month. Matching principal and interest repayment method is especially suitable for people with stable income, who buy a house and live in it, and whose economic conditions do not allow excessive investment in the early stage.
Equal principal repayment: suitable for people with higher income at present.
In addition to the equal principal and interest repayment method, average capital repayment method is also a common method to repay the mortgage, and the borrower can gradually reduce the burden with the increase of repayment period. This repayment method distributes the principal to each month and pays off the interest between the last repayment date and the current repayment date.
For example, suppose you need to borrow 200,000 yuan from a bank with a repayment period of 20 years. According to the current interest rates of most banks, the average capital method is selected. In the initial repayment period, the monthly repayment amount in the first year is about 1.700 yuan; The average monthly repayment in the last year was around 800 yuan. The total repayment amount of the average capital method is 365,438+0,000 yuan, of which the amount of interest paid is 65,438+0,654,38+0,000 yuan.
The characteristic of average capital repayment method is that when the borrower starts to repay the loan, the monthly burden is heavier than the equal principal and interest. But with the passage of time, the repayment burden will be gradually reduced. Compared with the method of equal principal and interest in the same period, the total interest expense of this repayment method is lower.
If the mortgage interest rate enters the interest rate increase cycle, the average capital repayment method will have more advantages. According to the regulations of most banks now, some loans can only be repaid once a year in advance. If the borrower intends to repay in advance, the average capital repayment method is also a good choice.
Related clauses of equal principal repayment:
1. Which repayment is cost-effective, equal principal and interest or average capital?
2. Average capital repayment method
3. What do you mean by equal principal and interest repayment?
4. The difference between the average capital method and the equal principal and interest method.
5. What are the repayment methods of housing loans?