What are the mortgage repayment methods?
1, equal principal and interest: the monthly repayment amount is the same, in essence, the proportion of principal increases month by month and the proportion of interest decreases month by month. With the same loan term and loan amount, the total interest of equal principal and interest is much higher than the average capital. People with equal principal and interest: the monthly repayment amount of equal principal and interest is the same, so it is more suitable for families with normal consumption plans, especially young people. And with age or promotion, income will increase and living standards will naturally improve. If this kind of person chooses the principal method, the early pressure will be very great.
2. Average capital: the monthly repayment amount is different, showing a state of decreasing month by month. It divides the loan principal equally according to the total repayment months, plus the interest of the remaining principal in the previous period, thus forming the monthly repayment amount. So the repayment amount in the average capital is more than one month, and then decreases month by month, less and less. Average capital is suitable for people: the average capital method is more suitable for lenders with strong repayment ability some time ago, because the repayment amount in the early stage is large, and then it decreases month by month. Of course, some older people are more suitable for this method because their income may decrease with age or retirement.
What are the precautions for prepayment of mortgage?
1. Allow banks to repay loans in advance at different times. Most banks require repayment for at least one year before they can apply for prepayment, but some banks have indicated that they can apply for prepayment at any time. Among the state-owned banks, BOC and CCB need to repay for one year before they can apply for early repayment, while ICBC needs to repay half a year in advance.
2. The interest rate adjustment cycle of banks is different, so is the interest rate adjustment cycle of banks. The term of general mortgage loans is more than 65,438+00 years. During this period, it is inevitable for the central bank to adjust interest rates, and the time for banks to adjust interest rates is different. Banks in China, such as China Industrial and Commercial Bank, China Agricultural Bank and China Construction Bank, etc. Generally, from June 65438+1 October1every year, the new repayment interest will be adjusted according to the latest central bank benchmark interest rate.
Don't forget to cancel the mortgage registration after paying off the mortgage. Pay off the mortgage in advance and don't forget to cancel the mortgage registration. Regardless of whether the loan is repaid within the contract period or in advance, citizens should not forget to cancel the mortgage registration after the loan repayment is completed.