What do you mean by equal principal and interest of mortgage? What are the repayment methods?
What do you mean by equal principal and interest of mortgage?
1, noun explanation: add up the total principal and interest of the mortgage loan, and then share it equally every month during the repayment period. As a repayment, he pays a fixed amount to the bank every month, but the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month.
2. Advantages: Pay the same amount every month. As a lender, the operation is relatively simple. Bear the same amount every month, which is also convenient for arranging income and expenditure.
3. Disadvantages: Because the interest will not decrease with the repayment of the principal amount, the bank funds take up a long time, and the total repayment interest is higher than the average capital repayment method to be introduced below.
4. Applicable people: families with stable income can buy houses for their own occupation, and economic conditions do not allow too much upfront investment. You can choose this method, such as civil servants, teachers and other groups with relatively stable income and job opportunities.
What are the repayment methods of equal principal and interest of mortgage?
1. This is a common method at present, and it is also recommended by most banks for a long time. Add up the total principal and interest of the mortgage loan and distribute it evenly to each month of the repayment period. As a repayment, he pays a fixed amount to the bank every month, but the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month.
2. For example, suppose you need to borrow 200,000 yuan from the bank, and the repayment period is 15 years. According to the current interest rates of most banks, you can choose a loan with equal principal and interest, and there will still be about 1.636 yuan per month. About 80% of 1636 in the first two or three years is the interest returned to the bank.
3. With this repayment method, it is relatively simple for the borrower to pay the same amount every month, and it is more convenient to bear the same amount every month to arrange income and expenditure. Especially for families with stable income, buying a house for self-occupation, and economic conditions do not allow excessive investment in the early stage, you can choose this method.
4. Civil servants, teachers and other occupations belong to groups with relatively stable income and job opportunities, which are very suitable for this repayment method. However, it also has some shortcomings. Because the repayment speed of principal is relatively slow, it takes a long time to occupy bank funds, and the total repayment interest is higher than the average capital repayment method of the same period to be introduced below.
What we introduced above is about the equal principal and interest of mortgage. What does that mean? What are the related problems in the repayment method of equal principal and interest of mortgage? We should know something about these problems. There are different repayment methods for matching principal and interest, and we have also made some explanations. If we want to apply for this kind of loan, we can use it as a reference and hope to help you.
(The above answers were published on 20 17-09-28. Please refer to the actual situation for the current purchase policy. )
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