Five ways of prepayment to save money. A loan of 400,000 can save nearly 70,000! Case study: Mr. Wang bought a house with a total price of 700 thousand. The down payment is 50%, the loan amount is 350,000, and the loan period is 20 years. After six months of equal repayment of principal and interest, he considered prepayment. At this time, his remaining loan amount is 335 180 yuan, of which the interest paid is * * *101/7 yuan. As can be seen from the above data, in only half a year, Mr. Wang spent more than 1 1,000 yuan in interest. And use the following five repayment methods to calculate the total interest expense, and you can figure out which prepayment method is more economical. ◆ 1. Pay off all the interest of the remaining loan in one lump sum = the interest amount before prepayment (1017 yuan) ◆ 2. Partial prepayment, shortening the repayment period by RMB 654.38+million, maintaining the previous monthly repayment level of RMB 2,470, while shortening the loan period. Total interest =10117+81000 = 91kloc-0/7 yuan ◆ the third type: partial prepayment, reducing monthly payment, and prepayment of 654.38+million yuan in the same repayment period. Total interest =10117+158494 =16861yuan ◆ The fourth scheme: partial prepayment, reducing monthly payment, shortening repayment cycle, and monthly prepayment of 65438. Total interest =10117+117804 =127921yuan ◆ Fifth scheme: partial prepayment, increasing monthly payment and shortening repayment period. Total interest =10117+75470 = 85587 yuan. Professionals in the third-level marketing department of Zhongyuan Real Estate remind buyers that shortening the term is the key factor to save interest. However, the reduction, constant and increase of monthly payment will gradually increase the degree of interest savings. Therefore, mortgage consumers should ultimately choose the repayment method that suits them according to their own financial strength and future income expectations. At the same time, remember to go to the insurance company in advance to handle the formalities of repayment and surrender. The calculation formula of insurance: Take Mr. Wang as an example: for his 20-year loan of 350,000 yuan, the premium is 350,000× 0.5 ‰× 20 = 3,500 yuan. If he shortens the loan period by 10 year, the premium receivable will be 350,000 yuan × 0.8 ‰ (the corresponding rate of insurance period 10 year) × 60. (Because the insurance rates of various insurance companies are different, they will be adjusted every year, so mortgage consumers should ask their insurance companies for specific calculation parameters. ) Carefully select the repayment method: the maximum deposit for a loan of 400,000 yuan is 67,900 yuan. Among the repayment methods provided by banks at present, matching principal and interest, average capital and biweekly payment are three commonly used methods. And each method has different applicable groups and repayment characteristics. By comparing the advantages and disadvantages of the three repayment methods, professionals in the third-level market research department of Zhongyuan Real Estate suggest that the average capital should be chosen for those whose loan term is above 15, and the biweekly loan should be chosen for those whose loan term is below 15. Taking a house with a loan of 400,000 yuan as an example, if the interest rate is calculated according to 5.8 14%, it is also a mystery to adopt different repayment methods. According to the analysis of professionals, in the ways of matching principal and interest, average capital and biweekly repayment, the interest paid by matching principal and interest is the highest in terms of total interest expenditure. The interest paid on the loan of 400,000 yuan+200,366.03 yuan, and the interest paid in 20 years is 2775 1 1.99 yuan. Similarly, taking a loan of 400,000 yuan as an example, if the average capital is used for 25 years, the interest can be saved by 679,068+07 yuan. However, compared with biweekly loans, the difference of interest expenses in average capital appears small scissors difference with the increase of loan years. Taking the loan of 15 as the balance point, on this basis, the interest of average capital is basically the same as that of biweekly payment. From 15, the interest expense paid every two weeks is slightly lower than the average capital. Taking the loan term of 400,000 10 year as an example, the biweekly payment is 2767.8+02 yuan less than the average capital. Since 15, the gap between them has obviously increased. Taking the loan of 400,000 yuan for 25 years as an example, the biweekly payment is 8338+0 yuan more than the average capital. Reference/news/2007-08-17/352694.html If you have the money to repay the loan, the sooner the better.