The difference between mortgage principal repayment and principal and interest repayment
The definition of equal principal and interest: the monthly principal increases, the monthly interest decreases, and the monthly repayment amount remains unchanged; The definition of average capital: the principal is constant, the interest is decreasing every month, and the repayment amount is decreasing every month.
What details should I pay attention to when buying a house loan?
1, apply for a mortgage and do what you can.
When applying for a mortgage, some buyers will choose to apply for a higher amount. This kind of people think that the bigger the amount, the better. In fact, this is not the case, because the mortgage will be repaid after all, and interest will be repaid. The longer the buyer's loan term, the larger the loan amount, the more loan interest paid, and the greater the repayment pressure.
2. Prepare loan information in advance.
For those who borrow money to buy a house, when applying for a mortgage, they must prepare relevant materials in advance. The necessary materials for handling the loan include: original and photocopy of ID card, original and photocopy of household registration book, academic certificate, income certificate and photocopy of bank account, copy of house purchase contract, down payment invoice, medical and social security related certificates, etc. (Married people also need to prepare a copy of marriage certificate). Finally, it is very important that the previous credit card repayment has a bad credit record, so you must apply for removal or issue relevant certificates.
3. Have a clear understanding of the repayment method.
Buyers who borrow money to buy a house must choose the repayment method that suits them. At present, there are two repayment methods, namely equal principal and interest and average capital. The general advantage of funds is less interest, but the monthly supply is high and the pressure will be greater. The total interest of equal principal and interest will be higher, but the monthly repayment pressure will be less. You can choose the appropriate repayment method according to your actual situation.
4. Don't use the provident fund before applying for a loan.
If the buyer helps to pay the housing provident fund, do not use the provident fund when applying for a mortgage. When applying for loans, buyers can choose provident fund loans to buy a house.
The above knowledge about the difference between mortgage principal repayment and principal and interest repayment is introduced here, hoping to help you. If you want to know more, please follow Qijia. com。