After the customer repays part of the mortgage in advance, there are two main options, either shortening the repayment period and keeping the monthly payment unchanged; Either choose to reduce the monthly payment and keep the repayment period unchanged.
Therefore, if the customer chooses to keep the repayment period unchanged and reduce the monthly payment, it is natural to charge interest for 30 years; And if the customer chooses to keep the monthly payment unchanged and shorten the repayment period, then naturally there is no need to charge interest for 30 years.
Of course, it should be noted that no matter which option, after the mortgage is repaid in advance, the interest will not be calculated according to the total loan amount, but according to the remaining unpaid capital, so the interest can be reduced to a certain extent, only by reducing the amount. If you repay in advance in the middle and early stage of repayment, you may be able to reduce interest more; If you repay in advance in the later period of repayment, it is estimated that there will not be too much interest relief.
How to calculate the mortgage interest?
The calculation basis of mortgage interest is publicity: principal * interest rate * loan term. If you use a loan with equal principal and interest, it means that the total amount to be repaid every month is the same, but the ratio of interest to principal will change; General capital loans, with the increase of repayment times, interest will be less and less until the loan is paid off.
How to repay the loan will be more cost-effective.
1. In the process of lending to the bank, the bank staff will also calculate the loan to be repaid according to the individual's choice. The amount that the lender needs to repay each month includes principal and interest.
2. At present, there are two loan methods provided by banks: equal principal and interest and average capital, and the two repayment methods need to repay different monthly payments. The average capital, that is, the principal will never change, and the interest needs to be calculated separately, while the equal principal and interest are the same as the monthly payment, but the proportion of principal and interest is different.
3. If you buy a house with a general capital loan, the amount of principal repaid in the early stage will be relatively large. Compared with the loan with equal principal and interest, the lender will pay less interest, but it needs to be analyzed in detail.
4. As long as the lender chooses the repayment method of average capital, it means that the lender will change the loan principal first in the later period, which requires the lender to consider the efficiency of the use of personal funds. If there is a demand for funds, we should choose equal principal and interest, and try our best to let the principal run in our hands.