At present, many people borrow money from banks to buy houses. The short time is 5 years, 10 years, and the long time can reach 30 years. Some people don't want to work for the bank all their lives, and they have enough funds at hand, so they can choose to repay in advance. How to calculate the interest of mortgage prepayment? Is it cost-effective to prepay?

First, how to calculate the interest of mortgage prepayment?

1, because there are two ways to prepay, one is to pay off the house loan in full. If you choose this method, the interest will be received until the day when you pay off the loan. In other words, it will calculate the interest according to the funds you borrowed from the bank, and then the bank will settle the principal plus interest of the mortgage with you at one time.

2. Some people choose to repay some loans in advance. When calculating interest, they won't only calculate the principal and interest that you come back early. The remaining unpaid interest is calculated according to the original loan contract interest rate. Because you have already paid back some money, we can choose to keep the monthly payment unchanged, but the repayment time can be shortened.

Another way is that you can shorten the monthly repayment amount and keep the deposit time unchanged. Compared with the two, the former will be less interested.

Second, which way is better to choose early repayment?

There are two ways, one is average capital, and the other is equal principal and interest. The two repayment methods have their own advantages and disadvantages, and everyone can choose according to everyone's actual situation.

1. Choosing the former means different monthly repayment amount, while choosing the latter means the same monthly repayment amount. The interests generated by the two are quite different. If you choose the former, the total interest on repayment will be slightly less.

2. For example, if you borrow 500,000 yuan from the bank now, the loan period is only one year, according to the current loan profit rate. If the former is selected, the total repayment interest is 2356 yuan, and the latter interest is 237 1 yuan. With the increase of time, the total interest of repayment will be more, which can be selected according to the actual demand.

3. Choosing the former is more suitable for people with higher income, and the latter is suitable for people with lower income.

The above content is about prepayment of mortgage, and how to calculate part of the interest of prepayment. Different repayment methods have different benefits, so you can choose the appropriate repayment method according to your actual situation.

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