Hello, how is the interest rate on housing loans currently calculated in Shenzhen?

1. Equal principal and interest method: Calculation formula

Monthly repayment = principal * monthly interest rate * [(1 month interest rate)^n/[(1 month interest rate)^n -1]

In the formula, n represents the number of months of the loan, ^n represents the nth power, such as ^240, which represents the 240th power (loan for 20 years, 240 months)

Months Interest rate = annual interest rate / 12

Total interest = monthly repayment * number of loan months - principal

Calculated: the monthly repayment is 5343.38 yuan (the same every month). The total repayment is 1,282,411.20 yuan, and the total interest is 582,411.20 yuan.

2. Equal principal amount method: calculation formula

Monthly repayment amount = principal/n remaining principal * monthly interest rate

Total interest = principal *Monthly interest rate* (number of loan months/2 0.5)

Calculated: the first month’s repayment amount is 6883.33 yuan (then it will decrease month by month, and the more you repay, the less), the last month’s repayment amount It is 2933.19 yuan. The total repayment is 1,177,983.33 yuan, and the total interest is 477,983.33 yuan.

Comparing the above two methods, the equal principal method pays 104,427.08 yuan less than the equal principal and interest method.

The borrower can choose which method to repay when applying for a loan at the bank.

Hope this helps