Buying a house is the first step to starting a family and is very important in a person's life. However, when buying a house, few people can afford to pay the full price, so they usually choose a loan. There are two types of bank loans, one is to be repaid in 20 years, and the other is to be repaid in 30 years. Let’s take a look at the difference between a 30-year loan and a 20-year loan with the editor. By the way, if you pay off a 30-year loan in advance, you will suffer a loss. And how to calculate the interest on early repayment of the loan for 30 years.

1. The difference between a 30-year loan and a 20-year loan

The difference between a 30-year loan and a 20-year loan is very big, mainly reflected in the interest. If you buy a house with a loan of 1 million, According to the current loan interest rates, the repayment amounts and interest rates of commercial loans (base interest rate 4.9%, mortgage interest rates vary from place to place, and have risen to 5.88% in many cities) and housing provident fund loans (mortgage interest rate 3.25%) are different. There are the following four types:

1. Commercial loan for 20 years: the mortgage interest rate is 5.88%, the total repayment is 1.7029 million yuan, of which the total interest is 702,900 yuan; the monthly repayment is 7095.25 yuan.

2. Commercial loan for 30 years: mortgage interest rate is 5.88%, total repayment is 2.1307 million yuan, of which total interest is 1.1307 million yuan; monthly repayment is 5918.57 yuan.

3. Housing provident fund loan for 20 years: the mortgage interest rate is 3.25%, the total repayment is 1.3613 million yuan, of which the total interest is 361,300 yuan, and the monthly repayment is 5671.96 yuan.

4. Housing provident fund loan for 30 years: the mortgage interest rate is 3.25%, the total repayment is 1.5667 million yuan, of which the total interest is 566,700 yuan, and the monthly repayment is 4352.06 yuan.

Whether it is a commercial loan or a provident fund loan, the interest rate of the loan is the same, but the total interest is different. Often, the longer the time, the more the loan amount needs to be repaid.

(Note: The above data are all from the Internet, for reference only, and are subject to actual data)

2. Will you suffer losses if you repay the loan in advance for 30 years?

(1) Will I still suffer a loss after taking a loan for 30 years? Whether you suffer a loss needs to be analyzed according to the specific situation. There are three specific situations. The following is the analysis.

1. If it is an equal-amount principal and interest loan and does not exceed one-third of the loan period, it is more cost-effective to repay it in advance.

2. If the principal amount is equal and does not exceed one quarter of the entire loan period, you can make partial early repayment.

3. If you want to pay off the loan as collateral, you don’t need to consider other issues.

(2) Some people say that if you repay the loan in advance for 30 years, it will be more loss-making. The reasons are as follows:

1. Currency depreciation

If the current monthly If the supply is 10,000 yuan, it will feel very stressful, but after 10 or 20 years when the currency depreciates, 10,000 yuan will seem very relaxed.

2. Increase in income

Generally speaking, personal income will slowly increase over time. The current mortgage may account for 80% of your income sources. , but in the future it is likely to only account for 50% or even lower, and the pressure will be much less.

3. The interest has been repaid

Take equal principal repayment as an example. The monthly interest is decreasing, and it becomes less as you go to the later years. It has been repaid in the previous years. The bulk of the interest bears a lot of pressure, so there is no need to settle it in advance at this time.

3. How to calculate the interest on early repayment of a loan for 30 years?

How to calculate the interest on early repayment of a loan for 30 years? If you want to know the interest of repaying a loan 30 years early, you need to analyze it based on the specific situation. The following are 3 common situations.

1. All repayments in advance

If the borrower applies for a single personal housing commercial loan and a personal housing provident fund loan from the bank, the borrower can repay all the loans in advance with the consent of the lending bank. If the principal is owed, the interest will be paid off along with the principal. The lender will not charge advance interest, nor will it refund or reduce loan interest charged at the original contract interest rate.

2. Partial early repayment

The loan term and loan interest rate remain unchanged according to the original loan contract. After partial early repayment, the monthly repayment amount will be reduced accordingly.

3. Shorten the repayment period

The loan period is shortened, and the original loan contract interest rate remains unchanged. After partial early repayment, the monthly repayment amount remains unchanged.

If you repay it all in advance, you will not be charged interest in the later period, but what you have paid before will not be refunded. If you repay part of the loan in advance, the interest rate to be charged will not change. , but the monthly repayment will remain unchanged or will be reduced accordingly. The specific interest needs to be considered based on the actual situation.

The above is about the difference between a 30-year loan and a 20-year loan. Will you suffer a loss if you pay off a 30-year loan early? How to calculate the interest on early repayment of a 30-year loan? I hope it will be helpful to everyone!