What are the mortgage repayment methods?
1, the average capital repayment method is suitable for people with high income. With the repayment of equal principal, the borrower's burden gradually decreases 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.
Under the same conditions, the total interest paid by this repayment method is less than the equal principal and interest, and the repayment burden will be gradually reduced with the passage of time. However, because the interest is decreasing, the monthly payment in previous years will be higher than the equal principal and interest, which is very stressful, so this repayment method is more suitable for people with high income and low repayment pressure.
2. Matching principal and interest repayment method is suitable for people with stable income. Matching the principal and interest 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. It can be seen that families with stable income and economic conditions do not allow excessive investment in the early stage can choose this method.
3. The method of paying interest quarterly and monthly is suitable for people engaged in business activities. One-time repayment of principal and interest refers to the repayment method of repaying all the loan interest and principal at one time on the loan maturity date. For small businesses or individual operators, it can reduce the repayment pressure.
4. Deposit interest every two weeks. Biweekly repayment shortens the repayment period and is higher than the original monthly repayment frequency. In this way, the principal of the loan decreases faster, which means that the loan interest returned during the whole repayment period will be far less than the loan interest returned at the time of monthly repayment, and the principal decreases faster. Therefore, the repayment period is shortened and the total expenditure of the borrower is saved. For people with stable jobs and incomes, it is very appropriate to choose biweekly payment.
5. Repay the loan in advance to shorten the term. Settle accounts before repaying the loan in advance, because not all prepayment can save money. For example, if the repayment period is over half and the principal in the monthly repayment amount is greater than the interest, then the significance of early repayment is not great. In addition, after some loans are repaid in advance, the remaining borrowers should choose to shorten the loan period instead of reducing the monthly repayment amount. This is because the interest charged by the bank is mainly calculated according to the time cost occupied by the loan amount, so shortening the loan period can effectively reduce interest expenses.
6, provident fund transfer owing on the loan. When applying for a portfolio loan to buy a house, on the one hand, make full use of provident fund loans, extend the loan period as much as possible, and enjoy the benefits of low interest rates to minimize the monthly repayment of provident fund; Try to shorten the life of commercial loans and increase the monthly repayment amount of commercial loans as much as possible within the family's economic affordability. After the provident fund account is used to offset the monthly payment of the provident fund, the balance can be used to offset commercial loans, thus saving considerable interest.