How to calculate the mortgage interest rate
The formula for calculating the mortgage loan interest rate is: interest = principal × interest rate × deposit period (i.e., time).
According to the calculation formula of ordinary mortgage loan interest rates, it can be divided into two categories: 1. Calculation method of equal principal and interest: According to the calculation principle, the bank first collects the remaining principal from each monthly payment, Then collect the principal; the interest rate of the monthly payment decreases as the remaining principal decreases, while the proportion of principal in the monthly payment increases as the monthly payment increases, but the total monthly payment does not change.
2. Calculation formula for equal amounts of principal: monthly repayment amount = monthly interest rate monthly interest rate.
Monthly interest = principal/month of repayment.
Monthly interest = (principal - accumulated repayment amount) × monthly interest.
Calculation principle: This amount is repaid monthly, but the interest decreases as the balance decreases.
Advantages and disadvantages of home loans
Advantages: 1. Because the house is a hard asset, the interest rate is very high, with a basic interest rate of only 10, and the loan fee is very low.
2. Because of the mortgage, the bank's loan risk will be greatly reduced and the bank is willing to lend, so the success rate of the loan will be higher.
3. The loan period is longer. This is perfect for borrowers who have long-term plans for long-term investments. Generally speaking, you can get a loan for ten years, but the bank’s age limit is 60 years old, so the loan period will be shorter.
4. It can be mortgaged or mortgaged to others.
5. If you have enough funds, you can pay in advance.
Disadvantages: 1. The house has great limitations. First of all, the house has to be put on the market. In addition, the age of the house must not exceed 20 years. Calculated by area, it must be more than 50 square meters. Housing below the age cannot be applied for, including affordable housing within 5 years, housing with small property rights, and public housing purchased under agreement cannot be applied for.
2. Even if the loan cannot be successfully obtained, the appraised value of the house must be paid by the borrower.
3. After the house mortgage is registered, the bank has the right to dispose of it. If the borrower is overdue for a long time, the bank can dispose of the property.