I. Average capital
Advantages: The average capital repays the equal loan principal every month, and at the same time repays the loan interest payable in the current month. With the reduction of the remaining repayment principal every month, the monthly repayment interest will gradually decrease, so the total repayment amount will gradually decrease and the repayment interest will be relatively economical.
Disadvantages: average capital's repayment method puts a lot of pressure on borrowers at the initial stage of repayment.
Suitable for people: suitable for young and middle-aged people with stable income who can bear a large monthly payment in the early stage and use the rest for large family expenses such as children's education in the later stage.
2. Equal principal and interest
Advantages: the repayment amount will be shared equally on a monthly basis, so the repayment pressure will not be great. Moreover, although the repayment principal increases month by month and the repayment interest decreases month by month, the total loan amount is still fixed, so it is easier to remember, and it is also convenient for buyers to calculate and arrange the capital expenditure of each period.
Disadvantages: the repayment period is longer, and the bank funds will take up a long time, so the interest expenses are relatively more.
Suitable for people: suitable for working-class people with low income in the early stage, great economic pressure and heavy monthly payment burden but relatively stable income.
Third, "balloon loan"
Advantages: "Balloon loan" can choose a shorter loan term of three to five years, but the monthly payment is calculated with a longer term and settled in a cycle of three to five years. During the repayment period, the interest and part of the principal can be repaid in installments, and the remaining principal can be repaid in one lump sum, thus reducing the monthly repayment pressure and realizing easy repayment.
Disadvantages: the borrower needs to repay most of the remaining principal when the loan expires, and the repayment pressure of the borrower will be great when it expires.
Suitable for the crowd: suitable for borrowers who are short of short-term funds and expect a substantial increase in future income, or borrowers who have an early repayment plan.
Fourth, "biweekly supply"
Advantages: the repayment frequency is increased, the total repayment amount of the borrower is effectively reduced, the repayment period is obviously shortened, and the principal recovery speed is accelerated, thus reducing the loan risk of the bank, and the borrower can save a lot of interest during the repayment period.
Disadvantages: frequent repayment times, borrowers may easily forget.
Suitable for people: suitable for people with weekly or biweekly salary, or consumers with other stable income ability and strong repayment ability besides daily salary.
Verbs (abbreviation of verb) "deposit and loan pass" and "deposit and loan pass"
Advantages: "deposit to loan" is similar to "deposit to loan". The bank will consider it as early repayment according to a certain proportion of the funds in the account, and the interest rate saved will be returned to the account as wealth management income, which the borrower can control at any time and the repayment is more flexible.
Disadvantages: Compared with stocks and bonds, the deposit income is relatively low.
Suitable for the crowd: suitable for borrowers who have a part of capital surplus but don't want to engage in high-risk investment, but want to get higher returns.
The above are the advantages and disadvantages of five different mortgage repayment methods compiled by Bian Xiao. I hope it will be helpful to everyone.
(The above answers were published on 20 15-09-25. Please refer to the actual situation for the current purchase policy. )
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