There are two repayment methods: 1 equal principal and interest (ordinary) 2 average principal.

Because 1 does not repay the same amount every time, including principal and interest, and the proportion of interest in each repayment gradually decreases, and the principal gradually increases. In other words, half of the total term pays more interest than the principal. Early repayment is mainly to repay the principal. You paid a lot more interest before, and the principal didn't move much. Of course not cost-effective. There is more money to repay in advance.

And 2, the principal is the same every time, so there is no loss in prepayment.

Summary: If you are not prepared to prepay, the two methods are similar. If prepayment is required, 2 has obvious advantages.

Second, which repayment method is cost-effective for repaying the loan in advance?

It is more cost-effective to choose average capital repayment method to repay the loan in advance.

At present, there are two common repayment methods, one is equal principal and interest repayment, and the other is equal principal repayment. The average capital repays the same principal every month, and the loan interest is calculated according to the actual loan amount. Although everyone has to pay a lot of money every month in the early stage, it is the interest generated in that month and the fixed loan principal. Because the interest paid when repaying the loan in advance is non-refundable, after the same loan for a period of time, the interest paid by the equal principal and interest repayment method will be higher than that by the average capital repayment method. Therefore, if the buyer wants to repay the loan in advance from the beginning, and the loan period is not very long, it is best to choose the average capital repayment method.

In addition, the first third repayment period is the most cost-effective, because the later, the less the principal, the less the interest. Once the repayment period exceeds one third, it is not suitable to repay the loan in advance, because most of the repayment at this time is the principal. Therefore, in the first third of the repayment period, equal principal repayment is the most cost-effective.

3. Which bank has the fastest prepayment?

Bank of China.

If the loan from the Bank of China is repaid in advance for less than one year, a penalty interest of no more than six months will be charged (calculated according to the loan interest rate on the prepayment date). If the loan is repaid in advance after one year, no penalty will be charged. As for the repayment, it depends on the repayment interest rate at that time to calculate how much principal has been repaid in recent years.

Pay attention to the following matters when handling the prepayment of mortgage: the time allowed for prepayment by banks is different. Most banks can apply for early repayment after one year of repayment, and some banks can repay loans in advance at any time. Pay attention to the repayment time of the loan bank when repaying the loan in advance; The loan life of general mortgage is more than 10 years, during which it is inevitable for banks to adjust interest rates. If they are in the interest rate cut channel, it is obvious that the faster they adjust, the more cost-effective. Whether it is to repay the loan in advance or according to the contract, the mortgage registration must be cancelled after repayment.

4. Which repayment method is cost-effective to repay the loan in advance?

Mortgage has the option to repay the loan in advance. Average capital is more cost-effective

Matching principal repayment means paying off the interest from the previous trading day to the repayment date at the same time within the loan month.

This kind of repayment interest expense is low, but the principal and interest paid in the early stage are more, and the repayment burden decreases month by month.

Matching principal repayment means that the lender distributes the principal to each month and pays off the interest from the previous trading day to the repayment date. Compared with equal principal and interest, this repayment method generally pays more principal and interest in the early stage, and the repayment burden decreases month by 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 outstanding principal in the current period and repay it quarterly. Due to demand, quarterly repayment (such as

The average capital repayment method refers to a repayment method, in which the total loan amount is divided into equal parts during the repayment period, and the interest generated in the same month is repaid every month, so that the monthly repayment amount is fixed and the pressure is greater, but with the passage of time. It is also convenient to determine the repayment ability according to your own income.

The total expenditure of this repayment mode may be reduced relative to the matching principal and interest, but the repayment pressure is greater at first. If it is used for mortgage loans, it is for people who are at their peak or who are about to retire.

Average capital repays, and the principal and interest of the initial amount are heavier. Especially when the total loan amount is relatively large, with the passage of time, the repayment burden is gradually reduced. This method has predicted the population whose income will decrease in the future.

In fact, many middle-aged people can repay the principal at a fixed level after having an economic foundation and taking into account other factors such as age growth, and the monthly loan interest decreases month by month with the decrease of the principal balance. Therefore, the average capital repayment method has a large monthly repayment amount at the beginning of the loan, and then decreases month by month (monthly repayment amount = monthly repayment principal × monthly interest rate).

For example, it is also a provident fund loan with a term of 654.38 million yuan, 15 years. The average monthly repayment amount of capital repayment method is 923.06 yuan (decreasing by 2.04 yuan per month), which is higher than the former 163.34 yuan. Because the latter paid back the money occupied by the inter-ministry and shortened the bank in advance, of course, the loan interest is generally less (5 yuan), and it is not a borrower.