Mortgage loans generally adopt the repayment method of equal principal and interest, and most banks also default to this repayment method. Only a few of them use the average capital repayment method, which generally requires customers to actively apply, so banks will use the average capital as the repayment method of mortgage loans.

The reason why banks do this is because if the mortgage is repaid with equal principal and interest, customers need to pay more interest, and banks can charge more interest, which is conducive to income; In addition, if the average capital repayment method is adopted, the early repayment pressure of customers is greater, so the credit conditions of customers are higher, and customers need to have a certain economic foundation and stable economic sources, otherwise the possibility of overdue repayment is greater.

If the customer's economic conditions are poor and it is not suitable for excessive capital investment in the initial stage of mortgage repayment, it is best to choose the repayment method of equal principal and interest. If customers don't want to pay too much interest, they can repay in advance when they have money, which can reduce interest and reduce borrowing costs.

What is the calculation formula of equal principal and interest repayment?

The term of mortgage loan for individual house purchase is generally more than one year, so one of the repayment methods is equal principal and interest repayment, that is, from the second month of using the loan, the loan principal and interest will be repaid in equal amount every month. The calculation formula is as follows:

[loan principal × monthly interest rate ×( 1+ monthly interest rate) repayment months]; [(1+ monthly interest rate) repayment months-1]

The following example illustrates the repayment method of equal principal and interest.

Suppose the borrower gets a personal housing loan of 200,000 yuan from the bank, the loan term is 20 years, the annual interest rate is 4.2%, and the principal and interest are repaid every month. According to the above formula, the sum of monthly principal and interest payable is 1233.438+04 yuan.

What is the difference between equal principal and interest and average capital?

Matching principal repayment is to repay the principal in equal amount every month, and then calculate the interest according to the remaining principal. Therefore, at the beginning, due to the large amount of principal, the interest will be paid more, so the initial repayment amount will be more and will be reduced every month. The advantage of this method is that it is more suitable for families with strong repayment ability and reduces the interest expenses caused by large repayment in the early stage.

Matching principal and interest repayment is to repay the same amount of loans (including principal and interest) every month during the repayment period. Because the monthly repayment amount is fixed, it can control the expenditure of family income in a planned way, and it is also convenient for each family to determine its repayment ability according to its own income.