How to calculate? According to the different repayment methods chosen by individuals, the calculation methods of mortgage loan interest are also different.
Repayment methods are divided into "equal principal and interest method and average capital method".
(1) Equal principal and interest repayment method
"Equal principal and interest repayment method", also known as "equal monthly repayment method", is a commonly used method at present. That is, within your repayment period, you will pay a fixed amount every month. In other words, not only the annual principal but also the annual interest will remain unchanged.
Equal principal and interest method: calculation formula
Monthly repayment amount = principal * monthly interest rate *[(65438+ 10 interest rate) n/[(65438+ 10 interest rate) n- 1]
Where n represents the number of months of loan, and n represents the power of n, such as 240, representing the power of 240 (20 years and 240 months of loan). Monthly interest rate = annual interest rate/12.
Total interest = monthly repayment amount * loan months-principal
The characteristic of matching principal and interest is that the monthly repayment amount remains unchanged during the whole repayment period. Lenders can accurately grasp the monthly repayment amount and arrange family expenses in a planned way.
(2) the law of average capital
Average capital method: calculation formula
Monthly repayment amount = principal /n remaining principal * monthly interest rate
Total interest = principal * monthly interest rate * (loan months /20.5)
The average capital is characterized by sharing the principal evenly throughout the repayment period and calculating the interest on a daily basis according to the loan principal balance. The monthly repayment amount decreases gradually, but the repayment rate remains unchanged. This method is more suitable for borrowers who have strong repayment ability at the initial stage and want to return a large amount at the initial stage of repayment to reduce interest expenses.
The loan interest decreases as the principal decreases. So, how can we pay less interest? One way is to choose the average capital repayment method before the loan. Because the "average capital repayment method" repays a lot of principal in the early stage, when you repay it in advance, the loss of interest is small. However, due to the high interest and low principal paid in the early stage, the "equal principal and interest repayment method" will have some losses when repaying in advance. Therefore, it is very important to choose a reasonable repayment method.
If you plan to repay in advance, it is more cost-effective to use average capital. If funds are tight in the early stage or other funds need to be used, it is recommended to choose the repayment method of "equal principal and interest"; If the income is relatively stable and does not need to be used for other purposes, it is recommended to choose the repayment method of "average capital". In addition, because the mortgage interest is a "one-year fixed" floating mode, considering the cost of the mortgage interest rate, if it is expected that the interest rate will gradually increase in the next few years, it is more favorable to choose the "even cost" repayment method.
Second, how to calculate the interest on bank loans to buy a house?
Bank loans to buy a house, the calculation of loan interest mainly depends on the down payment amount, repayment method (equal principal and interest repayment or equal principal repayment), mortgage learning, bank interest rate and so on. As the national policy on the real estate market is changing, both the bank interest rate and the down payment amount may change. Then, when calculating the interest of buying a house with a bank loan, it should be calculated according to the new data.
Because the calculation of bank loan interest is professional, involving some financial calculation formulas, so in order to facilitate the majority of property buyers to calculate interest, many websites have provided housing loan interest calculators. Property buyers only need to fill in the specific data in the corresponding places, and then click "Calculate", so they can easily calculate the interest on the bank loan to buy a house.
Because the mortgage interest rate of each bank is actually set by the central bank first, and then each bank makes appropriate adjustments according to its own situation. In other words, the mortgage interest rate is fixed, but because the principal of the loan application and the loan term are different, the calculated loan interest will be different.