There are two methods to calculate the interest of housing loans, namely, the equal principal and interest method and the average capital method. When the interest is calculated by the equal principal and interest method, the interest is equal to the monthly repayment amount multiplied by the number of loan months and then the principal is subtracted; When calculating interest by the average capital method, the interest is equal to the principal multiplied by the monthly interest rate and then multiplied by half of the loan months. Lenders can choose the repayment calculation method according to their own needs.

Calculation formula of mortgage interest rate

Loan interest is a kind of principal interest that buyers borrow from banks and pay at the interest rate stipulated by banks. The calculation formula of interest is:

Interest = principal × interest rate× deposit period (i.e. time).

The calculation of mortgage interest will be different because of the different loan methods and mortgage repayment methods.

According to the different repayment methods of mortgage, the calculation of mortgage interest can be divided into two calculation methods: equal principal and interest and average principal. How to calculate mortgage interest depends on the basic knowledge of interest:

The interest rate conversion formula for RMB business is (note: common for deposits and loans):

1, daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.

2. Monthly interest rate (‰) = annual interest rate (%)÷ 12.

Extended data:

According to the repayment formula of general mortgage loans, it can be divided into two types:

I. Calculation formula of equal principal and interest:

Calculation principle: from the beginning of monthly contribution, the bank collects the interest of the remaining principal first, and then the principal; The proportion of interest in monthly payment will decrease with the decrease of residual principal, and the proportion of principal in monthly payment will increase with the increase, but the total monthly payment will remain unchanged.

It should be pointed out that:

1, the maximum amount of urban provident fund loans should be combined with local conditions;

2. For residents who have borrowed money to buy a house but whose per capita area is lower than the local average, and then apply for buying a second set of ordinary self-occupied housing, the preferential policies for buying ordinary self-occupied housing with the first set of loans shall be implemented mutatis mutandis.

Second, the average capital calculation formula:

Monthly repayment = monthly principal, monthly principal and interest

Monthly principal = principal/repayment months

Monthly principal and interest = (principal-total accumulated repayment) x 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.