Matching principal and interest repayment, also known as regular interest payment, means that the borrower repays the loan principal and interest in equal amount every month, calculates the monthly loan interest according to the remaining loan principal at the beginning of the month, and settles it every month. Add up the total principal and interest of the mortgage loan and distribute it evenly to each month of the repayment period. As a repayment, he pays 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.
If you deposit money in the bank every day, you will get a day's interest. The more money you save, the more interest you will get. Similarly, the same is true for loans. If the bank loan exceeds one day, it will pay interest for one more day. The larger the loan amount, the more interest will be paid to the bank.
Because the monthly repayment amount is equal, in the initial monthly repayment of the loan, after excluding the monthly settlement interest, the loan principal is less; In the later stage of the loan, due to the continuous reduction of the loan principal, the loan interest is continuously reduced in the monthly repayment amount, and the monthly repayment of the loan principal is more.
This repayment method actually takes up more bank loans and takes longer. At the same time, it is also convenient for borrowers to reasonably arrange their monthly life and financial management (such as renting a house, etc.). ) is undoubtedly the best choice for those who are proficient in investment and are good at "taking Qian Shengqian as their home".
Bank calculation method:
The calculation formula of bank interest is: interest = amount of funds × interest rate × occupied time.
Therefore, the amount of interest, under the condition of constant interest rate, can only be determined by the time and amount of funds actually occupied, but not by which repayment method. This is the unchangeable truth!
Different repayment methods are only set to meet the different needs or consumption preferences of people with different incomes, different ages and different consumption concepts. Its essence is nothing more than "chop and change" or "chop and change" to repay the loan principal first, which leads to the long-term use of the loan principal and short-term use, and then affects the increase and decrease of interest with the change of the actual amount of funds occupied and the length of the term.
It can be seen that no matter which repayment method is adopted, banks do not do business at a loss, and customers do not have the benefit of saving interest expenses.
Analysis:
Advantages: Pay the same amount every month. As a lender, the operation is relatively simple. Bear the same amount every month, which is also convenient for arranging income and expenditure.
Disadvantages: Because the interest will not decrease with the repayment of the principal amount, the bank takes up a long time of funds, and the total interest of repayment is higher than the average principal repayment method to be introduced below.