How to calculate the interest on home loan?

The calculation formula of mortgage interest is: interest = principal × interest rate × deposit period (that is, time).

Mortgage interest is a kind of principal interest paid by home buyers according to the interest rate specified by the bank when they borrow money from the bank.

The calculation of mortgage interest will vary depending on the loan method and mortgage repayment method.

The maximum loan term of the loan shall not exceed 30 years, and the second-hand housing provident fund loan shall not exceed 15 years; the loan amount is 70% of the appraised value of the house; the loan interest rate shall be based on the loan interest rate for the same period and grade stipulated by the People's Bank of China Execution, the base annual interest rate changes according to the loan term.

Extended information

1. Mortgage repayment methods

Equal principal and interest and equal principal are two commonly used methods for our loans. Although they sound similar, they are In fact, there is a big difference in repayment interest. Many people only know about loans but do not know the difference between the two, so it is easy to pay a lot more interest and suffer losses from the bank.

1. Equal principal and interest repayment method

Equal principal and interest repayment method refers to a repayment method in which the principal and interest of the loan are repaid evenly in equal amounts every month during the loan period. .

Equal monthly repayment of loan principal and interest is the most common form of personal housing mortgage loan.

Applicable people: Applicable to families with stable income, such as civil servants, teachers, etc.

This is the repayment method currently adopted by the vast majority of people.

The advantage of this method is that the borrower's repayment operation is relatively simple, and equal monthly payments are also convenient for us repayers who do not have reasonable arrangements for income and expenditure.

2. Equal principal repayment method

The equal principal repayment method refers to the monthly repayment of loan interest and principal within the loan period, of which the monthly principal repayment If equal, interest is calculated monthly based on the sum of the total remaining principal.

Suitable for people: Suitable for people with higher income, but whose income is expected to decrease in the future, such as people facing retirement, or people with strong repayment ability in the early stage of repayment, and hope to repay in the early stage of repayment People who make larger payments to reduce interest expenses.

The characteristic of the equal principal repayment method is that the principal is evenly distributed throughout the entire repayment period, and the interest is calculated daily based on the principal balance of the loan. The monthly repayment amount gradually decreases, but the repayment of the principal is The speed remains constant.

Using this method, the monthly repayment amount will be higher than the equal principal and interest repayment at the beginning. When the total loan amount is large, the difference can even reach a thousand yuan, but as time goes by, the monthly repayment amount will be higher. The payment burden will gradually be reduced.

2. How to repay the loan more economically?

Comparing the two repayment methods, under the condition of full period repayment, the interest paid by the "equal principal and interest repayment method" is higher than that of the "equal principal repayment method".

But not all people should choose the "equal principal repayment method" to repay their loans, and it must be based on their own financial situation.

For people with diverse groups and incomes, the "equal principal repayment method" can be used;

If you have strong cash strength but have no willingness to repay in advance, you can The "equal principal repayment method" is used to repay the loan. As time goes by, the repayment in each period gradually decreases. Although this repayment method has greater financial pressure in the early stage, it can reduce future pressure.

If you are a civil servant, an ordinary teacher, an ordinary researcher, or you have a stable job, or you want a simple life, it is recommended to choose the "equal principal and interest repayment method", because in this repayment method, the repayment amount in each period is equal. It is helpful to better arrange your life in advance.

How to calculate the interest on a home loan

There are two methods for calculating the interest on a home loan, namely the equal principal and interest method and the equal principal method. When the interest is calculated using the equal principal and interest method, the interest is equal to The monthly repayment amount is multiplied by the number of loan months and then minus the principal; when calculating interest using the equal principal method, the interest is equal to the principal multiplied by the monthly interest rate and then multiplied by half of the number of loan months. The lender can choose to repay according to its own needs. payment calculation method.

How to calculate the interest on a house loan?

There are two methods for calculating the interest on a house loan, namely the equal principal and interest method and the equal principal method. When the interest is calculated using the equal principal and interest method, the interest is equal to The monthly repayment amount is multiplied by the number of loan months and then minus the principal; when calculating interest using the equal principal method, the interest is equal to the principal multiplied by the monthly interest rate and then multiplied by half of the number of loan months. The lender can choose to repay according to its own needs. payment calculation method.

How to calculate the interest on a loan to buy a house

There are two methods for calculating the interest on a house loan, namely the equal principal and interest method and the equal principal method. When the interest is calculated using the equal principal and interest method, the interest It is equal to the monthly repayment multiplied by the number of loan months and then minus the principal; when calculating interest using the equal principal method, the interest is equal to the principal multiplied by the monthly interest rate and then multiplied by half of the number of loan months. Lenders can choose according to their own needs. How repayments are calculated.

How is the interest on a home loan calculated?

There are two ways to calculate interest on home loans:

1. Calculation formula of equal principal and interest: [Loan principal × monthly interest rate × (1-month interest rate) ^ number of repayment months] ÷ [(1-month interest rate)^number of repayment months-1].

2. Calculation formula for equal amounts of principal: monthly repayment amount = (loan principal ÷ number of repayment months) (principal - cumulative amount of repaid principal) × monthly interest rate, where the ^ symbol Represents exponentiation.

For example: Assume that the principal is 10,000 yuan, the bank loan is for 10 years, and the base interest rate is 6.65%. Compare the differences between the two loan methods:

1. Equal principal and interest Repayment method: monthly interest rate = annual interest rate ÷12 = 0.0665 ÷12 = 0.005541667; monthly principal and interest repayment = [10000×0.005541667×(10.005541667)^120]÷[(10.005541667)^120-1]=114.3127 Yuan; total return The payment was RMB 13,717.52; the total interest was RMB 37,175,200.

2. Equal principal repayment method: monthly repayment amount = (loan principal ÷ number of repayment months) (principal - cumulative amount of principal repaid) × monthly interest rate = (10,000 ÷120) (10000 - the cumulative amount of principal repaid) × 0.005541667; the first month's repayment is 138.75 yuan, which decreases by 0.462 yuan every month; the total repayment is 13352.71 yuan; the interest is 3352.71 yuan.

1. Calculation method of interest on loan to buy a house

In the case of bank loan to buy a house, the calculation of loan interest mainly depends on the amount of down payment and the repayment method (equal principal and interest repayment or equal repayment) principal repayment), loan period, bank interest rate, etc.

As the country’s policies on the real estate market are changing, bank interest rates and down payment amounts may change. Then, when calculating the bank loan interest for house purchase, it should be calculated based on the data.

1. Equal principal and interest repayment method: monthly monthly payment = [loan principal × monthly interest rate × (1-month interest rate) ^ number of repayment months] ÷ [(1-month interest rate) ^ repayment Number of months - 1], monthly interest payable = loan principal × monthly interest rate × [(1 month interest rate) ^ number of repayment months - (1 month interest rate) ^ (repayment month number - 1)] ÷ [(1 Monthly interest rate)^Number of repayment months-1], monthly principal repayment = loan principal×monthly interest rate×(1-month interest rate)^(repayment month number-1)÷[(1-month interest rate)^ repayment Number of months - 1], total interest = number of repayment months × monthly payment - loan principal.

2. Equal principal repayment method: monthly monthly payment = (loan principal ÷ number of repayment months) (loan principal - cumulative amount of repaid principal) × monthly interest rate Principal repayment = loan principal ÷ number of repayment months, monthly interest repayment = remaining principal × monthly interest rate = (loan principal - cumulative amount of principal repaid) × monthly interest rate Monthly payment reduction amount = monthly Principal repayable × monthly interest rate = loan principal ÷ number of repayment months × monthly interest rate, total interest = (total loan amount ÷ number of repayment months total loan amount × monthly interest rate) total loan amount ÷ number of repayment months × ( 1 month interest rate)〕÷2×number of repayment months-total loan amount, monthly interest rate = annual interest rate÷12.

Note: When applying for a loan, you must pay attention to the application method. You must bring your personal information and relevant documents to the local financial institution to ensure the smooth application of the loan.

How to calculate mortgage interest

Interest = principal × interest rate × loan term; for example, for a loan of 200,000 yuan, the monthly interest rate is 0.71%, and the monthly interest payable is 2,000,000.71 %1month=1420.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds according to certain interest rates and must be returned. Loans in a broad sense refer to the general term for lending funds such as loans, discounts, and overdrafts.

Banks invest their concentrated currency and monetary funds through loans, which can meet the society's need for supplementary funds to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.