High cost performance.

1. If you don't do business or manage money, you can save the interest paid in advance if you have enough deposits, which is naturally more cost-effective than keeping it in the bank.

2. Repaying the loan in advance has nothing to do with the matching principal and interest and the repayment method of average capital. It makes no difference if it is paid off in one lump sum.

Because you want to advance in part, you just choose to shorten the repayment period or reduce the monthly repayment amount. Generally speaking, shorten the repayment period, because the time you borrow bank funds is shortened, so the total interest paid later is lower than the monthly repayment amount.

3. Equal principal and interest are relative to the average capital, and the corresponding monthly supply pressure and total interest are different. It is not directly related to early repayment of loans.

Extended data:

1, select the loan method

In a sense, the average capital method (decreasing method) is not necessarily better than the equal principal and interest method (matching method), and what kind of repayment method to choose will vary from person to person.

"Matching principal and interest repayment method" means that the borrower always repays the loan principal and interest with the same amount every month. At the beginning of repayment, the interest expense is the largest, and the principal is still relatively small. In the future, with the gradual reduction of monthly interest expenses, the repayment of principal will gradually increase.

The "average capital repayment method" (diminishing method) means that the borrower repays the same amount of loan principal every month, and the interest decreases with the principal every month, and the monthly repayment amount also decreases month by month.

Both repayment methods reduce the residual principal month by month, and the interest will also decrease month by month, which are calculated according to the time value of the funds occupied by the customer in the management center.

Because the "average capital repayment method" returns more loan principal than the "equal principal and interest repayment method" in the same period, the base for calculating loan interest in subsequent periods becomes smaller, and the total amount of interest returned is relatively small.

For example, Party A and Party B apply for an individual housing provident fund loan of RMB 654.38+million, with a term of 654.38+00 years and the effective date of the contract is June 20, 2005. A chooses the repayment method of equal principal and interest, and B chooses the repayment method of average capital.

If the adjustment factor of national interest rate is not considered, the monthly repayment amount of A is the same, which is 1032.05 yuan. Upon maturity, * * * shall pay the principal and interest 123846 yuan.

B the repayment amount in the first month is 1200.83 yuan, and then the repayment amount will decrease month by month with the decrease of the balance at the end of each month. The repayment amount in the last month is 836.40 yuan, and after the maturity, * * needs to pay the principal and interest 122233.90 yuan (Note: when calculating the repayment amount of B, it is assumed that it is 30 days per month, and the actual repayment is calculated based on the actual number of days per month).

Therefore, under the same loan amount, interest rate and loan period, the total interest of the "average capital repayment method" is less than that of the "equal principal and interest repayment method". Taking the loan of 65,438+65,438+00 as an example, B pays 65,438+06 yuan less interest than A, 12.65438 yuan.

Repayment method

There are two main repayment methods of housing mortgage loan, namely, matching principal and interest repayment method (matching method) and average capital repayment method (decreasing method). The former is to add the total loan amount (principal) of consumers to the total interest generated by the principal during the loan period to get the total principal and interest, and then divide it by the total number of months of loans to get the monthly repayment amount of consumers during the loan period.

The latter is based on monthly interest settlement, that is to say, the monthly repayment amount of consumers consists of the principal repaid each month plus the interest generated by the total loan last month, in which the principal repaid each month is the amount obtained by dividing the total loan of consumers by the total number of months of loans.

The traditional view is that the matching method has one advantage, that is, the monthly repayment amount is fixed, and consumers generally do not feel pressure because of repayment when their monthly income is relatively fixed; However, if the principal base of the previous decline method is large, the interest generated will be more, and the repayment pressure of consumers in the early stage will be greater.

The reporter got such data in the calculation: the monthly repayment amount of the equal method is 3235. 135 yuan, and the repayment amount of the first month and the last month of the decreasing method is 4270.67 yuan and 1672.70 yuan respectively. It can be concluded that the repayment in the first month is higher than that in the matching method 1035.0565 yuan, and the repayment in the last month is lower than that in the matching method 1562.438+035 yuan.

It can be seen that if you choose the decreasing method, the early repayment will be heavier, but if you can bite your teeth and resist the "three axes", then the repayment amount will decrease month by month, and the repayment pressure will become more and more relaxed. Finally, it is worthwhile to save a lot of interest expenses.