Mortgage loan refers to a loan business conducted by mortgage. For example, housing mortgage loan is a personal housing loan business in which buyers use the purchased housing as collateral and the real estate enterprises that purchase the housing provide regular guarantee. The so-called mortgage means that the mortgagor transfers the property rights of the house to mortgage, and the beneficiary acts as the repayment guarantor. After the mortgagor pays off the loan, the property rights involved are immediately transferred to the mortgagor, and the mortgagor enjoys the right to use in this process.

2. The interest before the principal is calculated as simple interest.

In the equal principal and interest method, the proportion of principal in monthly repayment increases month by month, and the proportion of interest decreases month by month. In addition, the matching principal and interest method is more common, so interest first and then interest usually refers to the "matching principal and interest method" to repay loans. From the perspective of saving, the average capital method can save more interest than the equal principal and interest method. However, in the first few years, the monthly repayment amount of the average capital method may be slightly larger than that of the equal principal and interest method, so families with tight monthly income will feel greater pressure at first, but its advantage is that the monthly repayment amount will gradually decrease, and the less amount will be paid for you every month.

Calculation method of compound interest:

1. The calculation of compound interest is to calculate the principal together with the interest it generates, which is profitable.

2. The characteristic of compound interest calculation is that the sum of the principal and interest at the end of the previous period is taken as the principal of the next period, and the principal amount of each period is different when calculating. The formula for calculating compound interest is:

3. The present value of compound interest refers to the principal that must be invested now in order to reach a certain amount of funds in the future under the condition of calculating compound interest. The so-called compound interest, also called rolling interest in Galilee, refers to the method of making a new round of investment with interest after a deposit or investment is rewarded.

4. The final value of compound interest refers to the sum of the principal at the end of the agreed period after the principal receives interest within the agreed period, and the interest is added to the principal for calculation. Simply put, it is to deposit a at the beginning, take I as the interest rate, and deposit the sum of principal and interest after n periods. Formula: f = a * (1+I) n.

Because the inflation rate and interest rate are closely related, just like the two sides of a coin, the formula for calculating the final compound interest value can also be used to calculate the actual value of a specific fund in different years. Just change the interest rate in the formula into the inflation rate.