According to different groups of people, the monthly repayment amount of equal principal and interest is fixed. During the repayment period, equal monthly repayment of principal and interest is more suitable for working families. The repayment method in average capital is characterized by monthly repayment of principal and daily calculation of interest according to the loan principal amount. The early repayment is large, and the monthly repayment is gradually reduced. Suitable for economy. line
Which repayment method of mortgage is the most cost-effective
1, there is a popular saying that banks should charge interest first when lending, and pay off all the interest in the early stage of monthly payment, and then pay off the principal after paying off all the interest. In fact, this statement is incorrect. When banks calculate the mortgage repayment amount for borrowers, they usually calculate the interest on a monthly basis. The borrower's monthly repayment consists of two parts, one is the principal and the other is the interest. The sum of the two is exactly the monthly payment.
2. At present, bank loans are divided into two repayment modes: equal principal and interest and average capital. Matching principal and interest means that the sum of principal and interest paid every month remains unchanged. The average capital is the total monthly repayment, in which the principal remains unchanged and the interest is calculated separately. There is also a saying that average capital's repayment method is more cost-effective than matching principal and interest. There are also misunderstandings in this formulation.
3. Assuming that the borrower chooses the repayment method of equal principal, the total loan amount is 6,543,800,000 yuan, and the average repayment of principal is 6,543,800,000 yuan, so the monthly repayment of principal is 6,543,800,000 yuan. 1 month repayment: 1 10,000 yuan principal plus the interest payable on the borrowed 1 month principal; By next month, the principal will still be 10000, plus (100- 1)= 990000, and the interest payable on the loan will be 1 month. Obviously, the interest next month is less than this month (less principal), so the total repayment amount is also less than this month.
What are the repayment methods?
1. Equal principal and interest is also called regular interest payment. This repayment method is that during the repayment period, the borrower repays the principal and interest in equal amount every month, and the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled every month.
2. The average capital is also called unequal interest repayment method, that is, the principal is repaid with interest and the principal is repaid with equal interest. This repayment method is to distribute the total amount of loans evenly during the repayment period, and repay the equal principal and interest generated by the remaining loans in the current month every month. In this way, because the monthly repayment amount is fixed and the interest is getting less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less.