Types and repayment methods of housing loans
With the thorough reform of China's urban housing system, the commercialization of housing has become an inevitable trend. However, because housing is an expensive necessity, most residents can't pay the house price at one time, so it is an objective need to apply for a loan. In order to meet this demand, there are various forms of loans at present. So, what are the types of housing loans? What are the loan repayment methods? How to calculate the principal and interest of the loan repayment method? How should borrowers choose the best repayment method according to their own economic situation? It can be said that these issues are of concern to every loan applicant. This is analyzed in detail below.
(1) Types of housing loans
At present, the types of housing loans mainly include welfare housing loans, low-profit housing loans, commercial housing mortgage loans, existing commercial housing mortgage loans, deposit certificates mortgage loans, entrusted mortgage loans and other loan types. Among them, welfare housing loans and low-profit housing loans are policy loans with long loan term and low interest rate; The latter four loans are commercial loans, with shorter loan term and higher interest rate than policy housing loans. The nature of housing determines the types of loans that residents apply for.
Welfare housing loan, that is, quasi-cost housing loan, is a low-interest policy housing loan provided to welfare housing buyers in line with housing reform. The government or enterprises do not charge land prices and are not profitable. Lenders can apply for a loan of up to 80%, and the loan period can be as long as 15 years.
Low-profit housing loan is a housing loan provided to employees who buy low-profit housing. Weilifang is a property built by the local housing management department and sold at a price controlled by the government. The price of this kind of housing is lower than that of commercial housing in the market and higher than that of welfare housing. The highest proportion of micro-profit housing loans is 60%, and the term is generally 5-8 years, which is a policy loan.
Commercial housing mortgage loan is a loan provided by banks to buyers, which is used to support real estate development enterprises to sell buildings smoothly and help buyers to pre-purchase commercial housing at market prices. Its characteristics are that the amount of a single loan is larger than that of welfare housing and micro-profit housing, with high interest rate, third-party (developer) guarantee and mortgage of uncompleted residential flats.
Mortgage loan of existing commercial housing refers to the loan that the owner of finished commercial housing (existing building) applies to the bank for purchasing a house or other reasons. This kind of loan has high interest rate and short term, generally not exceeding one year.
A certificate of deposit mortgage loan refers to a loan in which the owner of a house applies to the bank for a one-time discount (usually a discount of 20% to 10%) to pay off the house price. Generally, one loan and two deposits are required, and the term of the certificate of deposit is the same as that of the loan, with a term of 3-8 years.
Entrusted mortgage loan refers to the commercial housing mortgage loan provided by real estate development enterprises to buyers to promote uncompleted residential flats. The creditor of the loan is the developer, and the bank is only the intermediary.
② Description of repayment method
As can be seen from the above, different types of loans are suitable for different buyers, so loan applicants cannot choose the type of housing loans. However, loan applicants can reasonably choose their own loan repayment methods according to their own economic income, so as to achieve a good balance between repayment ability and interest expenses. The repayment methods of housing loans include simple interest, principal and interest repayment, diminishing repayment, equal repayment, equal incremental repayment, equal incremental repayment and combination repayment. Explain them one by one.
1. Simple interest and interest repayment method
This repayment method is the same as the corporate loan, that is, the loan customer only needs to pay off the loan principal and interest within the loan period, and pay off the interest from the previous trading day to the repayment date before repaying the principal. This method is suitable for loans with a loan term of about one year, such as mortgage loans for existing commercial houses.
2. Decreasing repayment method
This repayment method requires the borrower to repay the average capital in each period, and at the same time pay off the loan interest from the previous trading day to the repayment date. The principal returned in each period is equal to the total loan divided by the number of loan periods.
Assuming that the total loan amount is Y, the number of loan periods (months) is N, and the monthly loan interest rate is I, which has been repaid to the fifth period, then:
Average monthly principal repayment amount = y/n
Loan balance (remaining loan principal) =( 1-k/n)×y
Cumulative repayment = k/n× y+[k-(k-1) k/2n ]× y× i.
Cumulative interest expense = [k-(k-1) k/2n] × y× i.
3. Equal repayment method
The borrower who adopts the method of equal repayment has the same repayment amount in each installment (month), and the balance returned in each installment (average monthly repayment amount) includes the principal and interest payable in each installment, which should be paid off in full before the loan deadline.
Assuming that the total loan amount is Y, the number of loan periods (months) is N, and the monthly loan interest rate is I, which has been repaid to the last period, then:
Monthly repayment amount = {i× (1+i) n/[(1+i) n-1] }× y.
Payment balance (remaining loan principal) = {(1+I) n-(1-I) k/[(1+I) n-1] }× y.
Cumulative repayment = {i× (i+i) n/[(1+i) n-1] }× k× y
Cumulative interest expense = {ki (1+I) n/[(1+I) n-1]-[(1+I) k-1]/[
4. Incremental repayment method
Incremental repayment is a repayment method mainly aimed at young workers and other borrowers whose income has increased steadily in a certain period of time. In this way, the borrower can first determine the average monthly repayment amount within a certain period of time (such as one year) according to his own income, and then determine the increase (or increase ratio) of gradual repayment, but the loan principal and interest must be repaid with the same repayment amount (average monthly repayment amount) every month. There are two ways of incremental repayment: equal incremental repayment and equal incremental repayment.
For equal incremental repayment, the calculation formula of repayment and interest is as follows:
Assume that the total loan amount is n, the monthly loan interest rate is I, and it has been repaid to the k-th installment. The average monthly repayment amount of the borrower in the first installment is A, and the average monthly repayment amount in each t installment (in months) is increased by C compared with the previous installment. Suppose that n = t× V+W, and K = t×D+E( 1≤K).
a = {（ 1+I）N×I/【（ 1+I）N- 1】}×Y-{【（ 1+I）T×V- 1/（ 1+I）T】×【（ 1+I）W-V】/【（ 1+I）N-6543
Loan balance (remaining loan principal) = (1+i) k× y-[(1+i) k-1/i] × a-{[(1+i) t× d-/kloc-.
Accumulated repayment = k× a+[d (d-1) 2/6 ]× t× g+[d (d+1)/2 ]× e× g.
Cumulative interest expense = cumulative repayment +Y- loan balance
The related calculation formula of equal ratio incremental repayment method is divided into two situations, namely:
Assume that the total loan amount is Y, the number of loan periods (months) is N, and the monthly loan interest rate is I, which has been repaid to the first period. The average monthly repayment amount of the borrower in the first installment is a, and the average monthly repayment amount (in months) in each installment will increase in proportion to the previous installment, assuming that n = t× V+W and k = t×D+E( 1≤
(1) When 1+S is not equal to (1+I)
a = { y×I×（ 1+I）n×【（ 1+I）T-（ 1+S）】/{（ 1+I）n×【（ 1+I）T- 1】-【（ 1+I）T-（ 1+I 65
Loan balance (remaining loan principal) = y× (1+i) k-{a (1+i) k-[(1+i) t-1]-[(1+i)
Accumulated repayment = (SD-1)/(s-1) × a× t+a× e× SD.
Cumulative interest expense = cumulative repayment +Y- loan balance
(2) When 1+s =( 1+I)t,
a = { y×I×（ 1+I）}/{（V+ 1）×（ 1+I）-V×（ 1+I）-（ 1+I）}
Loan balance (remaining loan principal) = y× (1+I) k-[(d+1) × (1+I) k-d× (1+I) t× (d-q)+e.
Cumulative repayment = [SD-1/s-1] × a× t+a× e× SD.
Cumulative interest expense = cumulative repayment +Y- loan balance
5. Combination repayment method
The combination repayment method refers to the combination of two repayment methods in the same housing loan. This method is mainly suitable for mortgage loans with certificates of deposit. At this point, the total loan is divided into two parts. The part of the loan that is equivalent to the deposit amount of the certificate of deposit adopts the method of simple interest rate increase and repayment, and the rest adopts the method of equal repayment or incremental repayment.
Comparison of repayment methods
As mentioned above, the type of housing loan is not optional, but the repayment method is optional; In addition, the loan interest rate is set by the People's Bank of China, which is also not optional, but the loan term is optional for the borrower. By choosing the repayment method and loan term reasonably, the borrower can find a balance point suitable for his economic income between repayment ability and loan interest expenditure. The longer the loan term of housing loan, the higher the loan interest rate, and the greater the borrower's total interest expenditure; But at the same time, the less money (repayment burden) the borrower needs to repay each period (month). Because the relationship among loan term, interest rate expenditure and repayment burden is intuitive and clear, borrowers can easily choose the loan term that suits them; However, the calculation formulas of various repayment methods are complex, and the relationship between interest expenditure and repayment burden is no longer clear at a glance. Through mathematical comparison, we can find out the differences of various repayment methods, so that borrowers can make reasonable choices. Because the simple interest plus interest repayment method and the combined repayment method are special cases, the comparison is of little significance. This paper mainly discusses the methods of decreasing repayment, equal repayment, equal incremental repayment and equal incremental repayment. On the premise that the total loan amount, loan term, loan interest rate and other factors are the same, the corresponding loan balance and interest expenses are calculated by using the calculation formulas of various methods, and the following conclusions can be drawn:
(1) From the perspective of debt repayment, except for the starting point and ending point of the loan (the last period), the loan balance of various ways is the same, and at any other time point, the loan balance of various ways is different; Moreover, the loan balance of the equal ratio incremental repayment method is the highest, followed by the equal ratio incremental repayment method, the equal repayment method is the third, and the diminishing repayment method is the smallest. It can be seen that the repayment speed of the borrower's principal is the fastest in decreasing repayment mode, followed by equal repayment mode, the third in equal incremental repayment mode and the slowest in equal incremental repayment mode; That is to say, the borrower's prepayment burden decreases in the order of decreasing repayment, equal repayment, equal incremental repayment and equal incremental repayment.
(2) From the interest payment situation, except for the starting point of borrowing, the interest expenses of various methods are different at any other time. The interest expenses of the proportional incremental repayment method are the largest, followed by the proportional incremental repayment method, the equal repayment method is the third, and the diminishing repayment method is the smallest.
(3) The longer the loan term, the higher the loan interest rate, and the greater the gap between various ways to repay the principal and interest; The longer the loan term, the smaller the repayment burden of the borrower in the early stage, but the greater the interest expense.
When choosing the repayment method, the borrower adopts the most suitable repayment method according to the above conclusions, combined with his own economic income growth, and considering the factors of inflation and currency depreciation. In general, you can refer to the following suggestions:
(1) Short-term loans are mostly mortgage loans for existing houses of commercial houses. Buyers generally have certain economic strength, and loan applications are mainly used for capital turnover, hoping to repay the principal and interest in a short time according to their own funds. In this case, it is advisable to adopt the repayment method of simple interest plus interest or the repayment method of diminishing returns, so as to minimize the interest expenditure of the borrower.
(2) Most of the medium and long-term loans are commercial housing loans for purchasing uncompleted residential flats and policy welfare housing. For buyers, with the growth of age and length of service, the improvement of professional titles and positions, the economic income is gradually increasing. Generally, it is required to pay less balance in the early stage of the loan and pay more or settle the principal and interest in advance in the later stage. In this case, it is appropriate to use equal repayment or equal incremental repayment.
(3) In the case of low loan interest rate and high inflation rate, the actual loan interest rate is low (actual loan interest rate = nominal loan interest rate-inflation rate), and the borrower's actual interest expenditure is small, so it is most beneficial to adopt the equal ratio incremental repayment method.
(4) Contrary to the above situation, when the loan interest rate is high and the inflation rate is low, the actual loan interest rate is high, so it is best to choose the method of decreasing repayment to minimize the borrower's total interest expenditure.
(5) It is not difficult to see that the equal repayment method combines two factors: the borrower's early repayment burden is not large (less than the simple interest repayment method and the decreasing repayment method) and the interest expenditure is less (less than the increasing repayment method). At the same time, this method can be widely used because the repayment amount of each installment is fixed, the calculation is simple, and the payment and collection are clear to borrowers and banks.