2. Although the monthly repayment amount remains unchanged, the proportion of principal and interest will change. At the initial stage of repayment, interest accounts for a relatively large proportion. As customers continue to repay, the interest rate will decrease month by month and the principal rate will increase month by month. In the later period of repayment, the proportion of principal will be even greater.
3. If the funds on hand are sufficient, the customer can choose the prepayment operation. After repaying part of the mortgage in advance, the interest will not be calculated according to the total loan amount, but will be recalculated according to the remaining outstanding loans. It is precisely because of this that prepayment of mortgage can reduce certain interest. The longer the customer chooses prepayment, the more interest can be reduced.
What is the difference between equal principal and interest and average capital?
1, suitable for different people.
For families with relatively fixed monthly income, you can choose the repayment method of equal principal and interest when buying a house with a loan. Especially suitable for young people. With the increase of on-the-job experience, young people have greater opportunities for promotion and salary increase. Matching principal and interest can relieve the pressure of loan and improve the quality of life. However, if you choose the average capital, the financial pressure in the early stage will be very great. The repayment method of average capital is more suitable for individuals or families with certain economic ability, so that such individuals or families can easily afford the early repayment of average capital.
2. Different interest rates
Equal principal and interest are different from the interest paid by average capital. Relatively speaking, the interest paid by equal principal and interest is more than the interest paid by average capital. The longer the loan term, the greater the interest gap. The repayment amount of equal principal and interest is the same every month, while the repayment amount in the average capital is relatively large in the first month, and then decreases month by month. The less you pay, the less the total interest is.
What are the precautions for buying a house with a loan?
1. Know the repayment method clearly.
At present, there are two main repayment methods for bank loans to buy a house, namely, equal principal and interest and average principal. Although there is little interest in the average capital, the monthly supply is high and the pressure is relatively high. The total interest of equal principal and interest will be higher, but the monthly repayment pressure is small. You can choose the appropriate repayment method based on your own situation.
If you can't repay the loan on time, you can apply for an extension.
After the bank lends money, buyers can begin to prepare for repayment. Generally speaking, buyers only need to repay the loan on time every month. However, if the loan cannot be repaid on time due to difficulties, the buyer can apply to the bank for changing the loan term, and the loan bank can extend it if it agrees.
3. Ask how long it will take to get the loan.
Generally speaking, it is not the day when buyers apply for mortgages that banks will lend money. It takes time for the bank to review the borrower's information and loan amount. Buyers who are eager to buy a house should ask the bank clearly. If the supply is in short supply, they will have to wait for one year to lend money.