What is the repayment method if you pay the same amount every month?

The monthly repayment amount is the same as the equal principal and interest repayment method. That is, the borrower repays the loan principal and interest in equal amounts every month, where the monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month.

Equal principal and interest repayment (concept): That is, adding the total principal and total interest of the mortgage loan, and then evenly dividing it into each month of the repayment period, the monthly repayment amount is It is fixed, but the proportion of principal in the monthly repayment increases month by month and the proportion of interest decreases month by month. This method is currently the most common and is also the method recommended by most banks for a long time. Application process: Submit application materials; bank acceptance (investigation, approval); both parties sign a credit contract; apply for mortgage guarantee, and the amount becomes effective; when you need to use the loan, you can handle the borrowing and repayment by yourself through bank branches, self-service equipment and online banking payment procedures.

Equal principal and interest repayment method: In the early stage of repayment, the interest payment is the largest and the principal is the smallest. Later, the interest payment gradually decreases and the principal gradually increases, but the amount (principal + interest) is repaid in equal amounts every month. It is more suitable for young people with low income and little savings, because the monthly payment pressure is small and the quality of life will not be reduced. The formula is: monthly repayment amount = loan principal * monthly interest rate * (1 + monthly interest rate) ^ total number of repayment months / ( (1 + monthly interest rate) ^ total number of repayment months - 1); in the above formula, They are all fixed numbers, so the repayment amount is fixed. Let’s change the formula: monthly repayment amount = loan principal * monthly interest rate + loan principal * monthly interest rate / ((1 + monthly interest rate) ^ total repayment Number of payment months - 1), among which: we call 'loan principal * monthly interest rate' as the monthly interest payment, and call it 'loan principal * monthly interest rate / ((1 + monthly interest rate) ^ total number of repayment months - 1)' Pay the principal monthly. The sum of the two is the monthly repayment, which we also call the total principal and interest (one month); total interest = total number of repayment months * total principal and interest - loan principal, which is all the interest you pay. "^" indicates exponent.

The equal principal repayment method refers to repaying the loan principal in equal installments every month. The loan interest decreases monthly with the principal and interest, and the monthly repayment amount (principal + interest) gradually decreases. The total interest repayment is less than the equal principal and interest method. Suitable for middle-aged people with high income and certain savings. The formula is: monthly repayment amount = loan principal/total number of repayment months + (loan principal - cumulative repaid principal) * monthly interest rate; where: cumulative repaid principal = loan principal/total repayment Number of months of repayment * number of months of repayment; in the above formula, the number of months of repayment is a changing number, so the monthly repayment amount changes. We transform the formula and it becomes: monthly repayment amount = loan principal Loan/total number of repayment months + (loan principal*monthly interest rate-loan principal/total repayment months*monthly interest rate*number of repayment months); among them: loan principal/total repayment months, we call It is the monthly principal payable, which is a fixed value; loan principal * monthly interest rate, which we call the first month's interest payable, is a fixed value; loan principal / total number of repayment months * monthly interest rate = monthly payment Principal * monthly interest rate, we call it interest spread, is a fixed value; interest payable in the first month - interest spread * number of months of repayment is the interest to be repaid that month, which is a variable, that is: payable in month X Interest = interest payable for the first month - interest spread * (X-1); total interest payable = the sum of monthly interest payable for all months, which is the total interest you pay. What is called repaying the same loan every month?

Repaying the same loan every month is called equal principal and interest repayments. Over the repayment period, the monthly repayments of an equal-amount principal and interest loan are the same. Compared with equal principal payments, although the initial repayment amount is smaller than the equal principal payments, the total interest on the final repayment is higher than the equal principal and interest payments. However, both repayment methods have their own advantages and disadvantages, and we cannot say which one is better.

Comparison of two repayment methods: equal principal and interest and equal principal:

(1) Equal principal and interest repayment: Equal principal and interest repayment is also called regular interest payment, that is, the borrower pays interest every time The principal and interest of the loan are repaid in equal amounts every month. The monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month. Add the total principal and interest of a mortgage and spread it evenly over each month of the repayment term. As a repayer, you pay 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. With this repayment method, the funds that need to be repaid every month are the same, so everyone's repayment operation is relatively simple, and it is convenient to arrange income and expenses by bearing the same amount every month.

This method is more suitable for families with a stable income. If you are buying a house to live in, and the economic conditions do not allow too much initial investment, you can also choose this method. However, it also has shortcomings. Since the interest will not be reduced with the repayment of the principal amount, bank funds will be occupied for a long time, and the total repayment interest will be higher than the equal principal repayment method introduced below.

The advantage of this repayment method is that you pay the same amount every month. As a lender, the operation is relatively simple. Commitment to the same amount every month also makes it easier to arrange income and expenses. The disadvantage is that since the interest will not be reduced with the repayment of the principal amount, bank funds will be occupied for a long time, and the total repayment interest will be higher than the equal principal repayment method introduced below.

(2) Equal-amount principal repayment: Equal-amount principal repayment is also called the interest-following principal repayment method, and the equal-amount principal repayment method. The lender spreads the principal into each month and pays off the interest between the last transaction day and the current repayment date. Compared with equal principal and interest, this repayment method has a lower total interest expense, but more principal and interest are paid in the early stage, and the repayment burden decreases month by month. With equal principal repayments, the largest amount of money needs to be repaid in the first month, and then gradually decreases. Therefore, the pressure on repayers in the early stages of the loan is relatively high.

This method is very suitable for people who currently have a high income, but have expected that their income will decrease in the future. In fact, many people in middle age and above have a certain financial foundation after working hard for a period of time. Considering that their income may decrease due to retirement and other factors as they get older, they can choose this method to repay their loans. What is the method of repaying the same amount every month?

The monthly repayment amount is the same, that is, equal principal and interest repayments. Equal principal and interest payments are equal monthly repayments of the loan (including principal and interest) during the repayment period. Calculation method Monthly repayment amount = loan principal × [monthly interest rate × (1+monthly interest rate)^number of repayment months]÷{[(1+monthly interest rate)^number of repayment months]-1} Attachment: Monthly interest rate =Annual interest rate/12 What kind of loan is it if you pay the same amount every month?

A loan that pays the same amount every month is called equal principal and interest repayment. Over the repayment period, the monthly repayments of an equal-amount principal and interest loan are the same. Compared with equal principal payments, although the initial repayment amount is smaller than the equal principal payments, the total interest on the final repayment is higher than the equal principal and interest payments. However, both repayment methods have their own advantages and disadvantages, and we cannot say which one is better.

The two repayment methods are suitable for different groups of people. Equal principal and interest are suitable for people with fixed income, while equal principal is suitable for people with high initial income.

There are mainly the following types of loans to buy a house:

1. Housing provident fund loans: For residents who have participated in paying housing provident funds, housing provident fund low-interest loans should be the first choice when purchasing a house. .

Housing provident fund loans are policy subsidies, and the loan interest rate is very low. It is not only lower than the commercial bank loan interest rate in the same period (only half of the commercial bank mortgage loan interest rate), but also lower than the commercial bank deposit interest rate in the same period. In other words, there is an interest rate difference between the housing provident fund mortgage interest rate and the bank deposit interest rate. At the same time, the fees for housing provident fund loans are halved when handling related procedures such as mortgage and insurance.

2. Personal housing commercial loans: The above two loan methods are limited to employees of units who have paid housing provident funds, and there are many restrictions. Therefore, people who have not paid housing provident funds are not eligible to apply for loans, but they can apply. Commercial bank personal housing guaranteed loans, that is, bank mortgage loans.

As long as the balance of your deposit in the lending bank accounts for no less than 30% of the funds required to purchase a house, and you use this as the down payment for purchasing a house, and you have assets recognized by the lending bank as mortgage or pledge, Or a unit or individual with sufficient repayment capacity can act as a guarantor to repay the principal and interest of the loan and assume joint and several liability, then you can apply for a bank mortgage loan.

3. Personal housing portfolio loan: The maximum limit of provident fund loans that can be issued by the housing provident fund management center is generally 100,000 to 290,000 yuan. If the purchase price exceeds this limit, the shortfall must be applied to the bank for housing commercialization loan.

These two types of loans are collectively called portfolio loans. This business can be handled uniformly by the real estate credit department of a bank. Portfolio loans have moderate interest rates and larger loan amounts, so they are often chosen by borrowers.

According to the calculation formulas of general mortgage repayment methods, there are two types:

1. Calculation formula of equal principal and interest:

Calculation principle: The bank starts from each month During the payment, the interest on the remaining principal is collected first, then the principal; the proportion of interest in the monthly payment will decrease as the remaining principal decreases, and the proportion of principal in the monthly payment will increase as the remaining principal increases, but The total monthly payment remains unchanged.

It should be noted that:

1. The maximum amount of provident fund loans in various cities should be considered based on local conditions;

2. For those who have already taken a loan to purchase a house However, the per capita area is lower than the local average and residents who apply to purchase a second ordinary owner-occupied house will be subject to the preferential policies for purchasing an ordinary owner-occupied house with a first loan.

2. Calculation formula of equal principal:

Monthly repayment = monthly principal + monthly principal and interest

Monthly principal = principal /Number of repayment months

Monthly principal and interest = (principal - total cumulative repayment) Decreases as remaining principal decreases.