One is equal-amount principal and interest repayment, which is characterized by similar monthly repayments, with interest accounting for the greater proportion in the early stage and principal repayment accounting for the later period. Therefore, the impact of floating interest rates will be relatively greater in the later period. The other is equal-amount principal repayment, which is characterized by high repayment pressure and relatively large interest in the early stage. As the number of repayments increases, the pressure and interest in the later period will become lower and lower, and the principal repayment in the later period will account for a larger proportion. .

What is the difference between equal principal and interest and equal principal?

1. Different fixed repayments:

Equal principal repayment: monthly repayment The principal is fixed, plus interest repayable.

Equal repayment of principal and interest: The monthly repayment amount is fixed and includes the monthly interest and principal repayable.

2. Suitable for different objects:

Equal principal amount: suitable for planned early repayment of the loan.

Equal principal and interest: Suitable for loan repayment based on actual conditions.

3. Different loan repayment methods:

Equal principal amount: The principal remains the same, the interest decreases month by month, and the monthly repayment amount decreases. Compared with equal principal and interest, this repayment method has lower total interest expenses, but the principal and interest paid in the early stage are larger, and the repayment burden decreases month by month.

Equal principal and interest: The principal increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged. Equal principal and interest is also called regular interest payment, that is, the borrower repays the loan principal and interest in equal amounts every month. The monthly loan interest is calculated based on the remaining loan principal at the beginning of the month and is settled month by month.

4. The calculation formula is different:

Equal principal and interest repayment method: monthly repayment amount = loan principal × [monthly interest rate × (1 + monthly interest rate) ^ repayment month Number]÷{[(1+monthly interest rate)^number of repayment months]-1}.

Equal principal repayment method: Quarterly repayment amount = Loan principal ÷ Loan quarter number + (Principal - Cumulative amount of principal repaid) × Quarterly interest rate.

How can home buyers avoid mortgage payment interruption?

1. Extend the repayment period

Not all people can avoid mortgage payment interruption in this way Yes, the maximum loan period of a general bank is 30 years. If you choose a 30-year loan period when applying for a loan, there is no way to extend it. Home buyers who choose a shorter term can reduce the repayment pressure by extending the repayment period, so as to avoid the occurrence of supply interruption.

2. Apply for a moratorium on principal repayment

Don’t worry if you cannot extend the loan period. You can also apply to the bank for a moratorium on principal repayment to avoid cessation of mortgage payments. Borrowers can negotiate with the bank to see if they can temporarily only repay interest and not principal. However, not all banks will agree, so you need to understand in advance.