The calculation principle of the equal principal and interest formula: the bank first collects the interest on the remaining principal, and then collects the principal from the monthly contribution.
The proportion of interest in monthly contributions decreases with the decrease of residual principal, and the proportion of principal in monthly contributions increases with the increase, but the total monthly contributions remain unchanged.
Calculation formula of average fund: monthly repayment amount = monthly principal+monthly principal and interest = principal/repayment months = monthly principal and interest = (principal-accumulated repayment amount) × monthly interest rate calculation principle.
The amount of principal returned every month is always the same, and the interest will decrease with the decrease of the remaining principal.
Precautions:
1. Major banks will charge a certain penalty for full repayment in advance, some will charge interest for several months, and some will charge according to the percentage of loan principal. Consult the loan bank before prepayment.
2. To repay the mortgage in advance, you should apply one month in advance, provide materials according to the requirements of the bank, and make an appointment first.
After the provident fund loan is paid off, you should go to the provident fund center to apply for cancellation.