monthly repayment amount = loan principal × monthly interest rate+loan principal× monthly interest rate ÷(1+ monthly interest rate) -1
Once upon a time, it was not common to buy a house by loan. However, in the past five years, with the continuous increase of the reform of the housing system, this phenomenon began to slowly transform into a popular direction. Many ordinary people "buy today's enjoyment with tomorrow's money", and the old concept of "saving before buying a house" in the past is undergoing an unprecedented severe test.
For ordinary people in China, spending in advance is a new concept, but repaying loans in advance can be said to be a common practice and an old tradition. There is a saying, "it is not difficult to borrow again if you borrow and pay back." Under the guidance of this concept, being able to repay the loan on time is the most common credit, while being able to repay the loan in advance is considered as a higher and better credit.
Maybe it's because it's in line with international standards, or maybe it's because China's economy is developing continuously. In the past, the traditional virtue of "repaying loans in advance" praised by the world is facing the impact and challenge of new economic ethics. On the contrary, repaying loans on time has naturally become an unchangeable economic "hard constraint" pursued by many businesses.
It is understood that in the financial consultation on home ownership held by Shanghai Industrial and Commercial Bank a few days ago, early repayment of loans has become the main topic of concern for nearly 7% of the consultants. It can be seen that repaying loans in advance is becoming an irresistible new trend.
First, repaying loans in advance is right and wrong
Although repaying loans in advance is considered as a signal of "Shanghai residents' increasing confidence in buying houses", a large number of early repayment phenomena have begun to make banks unable to help but say "no". Repaying the loan in advance, which is regarded as a good performance by most people, has now been warned by some banks. For the sudden red card warning, there are different opinions from all walks of life, and it is hard to judge.
Shanghai residents have the strongest response. For most working-class people in Shanghai, buying a house still needs the support of bank loans. Leaving the loan, buying a house can only be a luxury. For various reasons, people's expectations of income and expenditure are often difficult to grasp, for example, enterprises suddenly have poor benefits; Sudden illness; The uncertainty of children's education expenses and other natural and man-made disasters, etc. Therefore, when signing a loan contract, leave room for yourself as much as possible. In general, repayment on time; Once the money is surplus, it may be repaid in advance to prevent accidents. What puzzles many Shanghai residents is that many banks jointly punish, which makes the majority of property buyers face the double default risk of lag and advance, and they are in an unequal position with banks. Some citizens also said that the "policy" jointly launched by banks is suspected of monopoly, which has affected the psychology of borrowers and may lead to a slowdown in loan speed or reduce the adverse consequences of loans.
people in financial circles believe that it is a breach of contract to repay the capital in advance, and it is also an international practice to collect liquidated damages. For example, in the United States, lenders must pay a certain fee in advance to make up for the losses caused by changes in bank capital arrangements; In Hong Kong, if the loan is repaid in advance within one year, 4% of the total interest will be charged as liquidated damages.
The business representative of a foreign bank also analyzed that with the entry of foreign banks, the competition for customers will become more and more fierce, and this move by Chinese banks is also an effective measure to protect existing customer resources from loss.
repaying the loan in advance may not be cost-effective. Some bank officials also suggested to the public that they must be cautious when repaying loans in advance. Because of the increase in the cost of repaying loans in advance, if there is a relatively good return on investment, they should not repay loans in advance. At present, the annual interest of commercial loans is only about 5%.
The liquidated damages for early repayment in Shanghai have not been published, which has caused a lot of trouble in the city. It is understood that no one has paid liquidated damages for repaying the loan in advance. According to further analysis by insiders, there are many reasons for repaying the loan in advance: First, after the introduction of the monetized housing allocation policy, some citizens received a one-time housing subsidy, and the change of the housing provident fund policy also enabled many buyers to offset the principal of the housing provident fund loan with the provident fund once a year, which enabled some borrowers to repay the loan in advance in part or in full. Secondly, when some borrowers who have the ability to pay off the purchase price in one lump sum apply for housing loans from banks, they originally reserved certain funds for investment. When the investment income is lower than the interest expense of mortgage loans, they choose to repay the loans in advance to reduce the interest expense of housing loans. Third, interest rate cuts triggered early repayment of loans. Since the bank cut interest rates again in February 22, it has not had an immediate effect on the economic operation, but the loan repayment fever caused by the interest rate cut deserves attention. Not only is the number of home buyers repaying loans in advance in Shanghai increasing, but Nanjing also has the same situation. According to the introduction of the mortgage department of Jiangsu Construction Bank, the peak period of personal fund accumulation was around the Spring Festival in 22, especially since February and March, the amount of deposits in the special repayment account of the bank's personal housing consumption loans surged, and there was a peak period of early repayment, with up to 2 or 3 loans a day. The interest rate reduction factor will continue to affect the repayment behavior of residents. In addition, some policy changes have also led to early repayment. For example, the suspension of the blue-printed hukou policy in Shanghai has led some foreigners to pay back in advance, fearing that the policy will change.
Some economists have pointed out that setting barriers to early repayment of loans will slow down the pace of "early repayment of loans". In fact, compared with other personal loans such as car loans, personal housing loans as real estate have lower risks, and with the implementation of personal credit information system, the proportion of personal housing loans in bad debts in banks is very small.
Some lawyers believe that the bank's actions violate the relevant provisions of the Contract Law and deprive the borrower of the right to choose; The borrower's early repayment is a right of suspension, not a breach of contract.
Some legal experts also pointed out that if the loan contract indicates that the loan can be repaid in advance, the bank must implement it; otherwise, the bank, as a commercial unit, has the right to implement the loan repayment rules as stipulated in the contract. The public should also change their ideas. Repaying the loan in advance does not mean honesty. Only repaying the loan according to the contract is the real honesty.
2. Repaying the loan in advance is knowledgeable
According to the laws and regulations of the Bank of China, there are two types of personal housing loans: one is provident fund loans and the other is commercial loans. There are three repayment methods of individual housing loans: one is the equal principal and interest repayment method. The second is average capital's repayment law. The third is the progressive repayment method. As far as the implementation is concerned, most banks generally adopt the first repayment method, that is, the monthly equal principal and interest repayment method, which is also the most acceptable repayment method for ordinary people and can be quickly understood.
prepayment is a science, and we should not be careless about it. There are two aspects here: first, we must choose a good way to repay the loan on schedule; The second is to choose a good way to repay the loan in advance.
1. let's see which repayment method is more cost-effective.
According to a survey conducted by the bank, 9% of people begin to pay attention to the choice of repayment method and reasonable loan term while choosing housing loans. In particular, some people with better expectations tend to repay in advance. For this group of people, it is very important to choose the loan method. The general repayment methods are: monthly repayment method and quarterly repayment method. Specific repayment of loans can also choose "equal principal and interest repayment method" or "average capital repayment method".
"equal principal and interest repayment method", also known as "equal monthly repayment method", is commonly used at present. It is to repay the loan in a fixed amount every month within the repayment period. In other words, not only the annual monthly principal remains unchanged, but also the annual monthly interest remains unchanged. The specific calculation formula is: Monthly repayment amount = principal × monthly repayment amount coefficient. It can be seen that its characteristic is that the monthly repayment amount is fixed.
The "average capital Repayment Method" is not widely used at present. It repays the loan in a fixed amount every month within your repayment period. That is to say, although the annual monthly principal remains unchanged, the annual monthly interest will change from more to less. The specific calculation formula is: monthly repayment amount = principal ÷ loan term (month)+(principal-repaid principal) × monthly interest rate. It is not difficult to find that the monthly repayment amount is not fixed, but changes with the change of monthly interest, which is a decreasing process.
on may 3, 22, Mr. Wang bought a house of 4, yuan, and after a down payment of 15, yuan, the remaining 25, yuan was used for a 2-year, 24-month commercial loan. If the "equal principal and interest repayment method" is adopted, the monthly repayment amount is 1655.5 yuan (25,× 66.22%). Among them, the average monthly principal is 141.67 yuan, and the average monthly interest is 613.83 yuan. In 2 years, you have to pay back so much every month, including the principal and interest, to pay back 397 yuan, 32 yuan.
if calculated by "average capital repayment method", the average monthly principal is the same as the former, which is 141.67 yuan, but the monthly interest is different, so the monthly repayment amount is also different. The repayment amount in the first month is 291.67 yuan (141.67 yuan+25, yuan × .42). The repayment amount in the second month is 287.3 yuan 1141.67 yuan+(25, yuan-141.67 yuan) ×.42). And so on every month. By the 2th year, that is, the 24th month, a * * * will pay off 375,191.26 yuan. The previous repayment method has nothing to do with time, and it is 1655.5 yuan per month; The latter repayment method is related to time, and the monthly repayment is different. As time goes by, the monthly repayment amount will be less and less.
in terms of monthly repayment, the monthly repayment amount is 1655.5 yuan by the method of equal repayment of principal and interest; However, the principle of equal monthly principal repayment is different from month to month, with the first month being 291.67 yuan and the second month being 287.3 yuan. Compared with the first month, the average capital repayment method is 436.17 yuan more than the matching principal and interest repayment method; Compared with the second month, the average capital repayment method is 421.8 yuan more than the matching principal and interest repayment method. It can be seen that average capital's repayment method is stressful in the early stage, but as time goes by, your pressure will gradually decrease.
from the perspective of monthly repayment interest, the principal has always been greater than the interest in the matching principal and interest repayment method, and the principal and interest are fixed, so the interest paid is naturally more; In average capital's repayment method, the interest is greater than the principal at first, but most of the time the principal is greater than the interest, but the interest is decreasing year by year, and the result is that the interest paid is relatively less. The 2-year repayment amount of the matching principal and interest repayment method is 397 32 yuan, of which the total interest amount is 147 32 yuan; The total repayment of average capital repayment method in 2 years is 375,191.26 yuan, of which the total interest is 125,191.26 yuan.
which kind of repayment is more cost-effective? "average capital repayment method" is more cost-effective. Why is the "average capital Repayment Law" more cost-effective? As can be seen from the above examples, on the one hand, the repayment method in average capital is under great pressure in the early stage of repayment, but the repayment of its principal decreases month by month, which will be very easy in the future. On the other hand, average capital's repayment method pays 221,287.74 yuan less interest than the matching principal and interest repayment method.
what kind of person is suitable for "average capital repayment method"? Not everyone will use the "average capital Repayment Law" to repay the loan. It depends on your own financial plan. For people with high salaries or diversified incomes, we may wish to adopt the "average capital repayment method"; If you have abundant funds now and don't plan to repay in advance, I suggest that you also use the "average capital Repayment Method" to repay the loan. Because, although this repayment method has great financial pressure in the early stage, it can reduce the pressure in the future. Its characteristic is that with the passage of time, the less repayment is later, the easier it is. If you are a civil servant, an ordinary teacher, a general researcher, or a person who works steadily and uncontested, I suggest you choose the "equal principal and interest repayment method".
2. Let's take a look at what is prepayment? Which way to repay the loan in advance is more cost-effective?
The so-called prepayment refers to an economic behavior that the borrower repays part or all of the house loan in advance on the basis of guaranteeing to repay the principal and interest of the individual housing loan on a monthly basis. It includes two forms: one is to repay some personal housing loans in advance; The other is to repay all personal housing loans in advance. For example, Mr. Xie applied for a provident fund loan of 3, yuan, with a loan term of 2 years. Under the premise of not overdue repayment, he can repay part of the principal in advance in several installments, and after each prepayment, the remaining loan principal will be reduced accordingly. The bank recalculates the borrower's monthly repayment amount according to the outstanding loan principal until the loan principal and interest are fully paid off. Suppose that when the remaining repayment amount is 9, yuan (the principal is 6, yuan and the interest is 3, yuan), Mr. Xie decides to repay 5, yuan in advance, then the principal is only 1, yuan and the interest is still 3, yuan. According to the relevant regulations, the 5,-yuan principal paid in advance will no longer bear interest in the future period, and the bank will only recalculate the monthly repayment amount for the 1,-yuan principal and 3,-yuan interest that have not been paid off at the same period and interest rate.
prepayment is not groundless. There are some national regulations and some local detailed rules.
From a national perspective, the "Measures for Personal Housing Loans of China Construction Bank" issued by the head office of China Construction Bank in March 1998 stipulates that borrowers do not have to pay off the loans on an average monthly basis within the original time limit, but can repay the loans in advance as long as conditions permit. The method also stipulates two ways to repay the loan in advance: one is to pay off all the loans in advance, and the other is to return part of them in advance. This provision applies to both commercial loans and provident fund loans.
from the local perspective, in may 1998, Beijing construction bank formulated the detailed rules for the operation of individual housing loans, which stipulated that Beijing construction bank could handle the business of borrowers repaying in part or paying off the remaining loan principal and interest in one lump sum in advance. In April, 2, Beijing Construction Bank revised the related business and issued the Detailed Rules for the Implementation of Personal Housing Loan of China Construction Bank Beijing Branch. At the same time, in order to standardize the business operation, Beijing Construction Bank has specially formulated and issued the Operating Rules for Personal Housing Loans of China Construction Bank Beijing Branch, Article 1 of which stipulates: If the loan term is more than one year, the borrower will repay the loan principal and interest from the month after the loan is issued; When the borrower normally repays the monthly repayment amount, it can also repay part of the loan principal to offset the remaining loan principal, but the repayment amount must be an integer multiple of 1, yuan; If the loan period is within 1 year (including 1 year), the provisions of the head office of China Construction Bank shall be implemented.
how to repay the loan in advance and what are the requirements? First, the borrower can only propose to repay part or all of the loan in advance for the first time after repaying the principal and interest of the loan normally for 6 months; Second, for serious loan management, lending institutions set a minimum amount for early repayment of some loans, which generally needs more than 1 thousand yuan; Third, the borrower generally needs to inform the lending institution 1 or 15 days in advance to repay the loan in advance, and must submit a written application to the lending institution with the original loan contract, bank loan repayment savings card, monthly interest statement of capital repayment, my ID card and other materials, and must be approved by it; Fourth, the borrower still needs to repay the original monthly loan principal and interest repayment amount in the current month, and at the same time deposit the loan amount that needs to be repaid in advance into the bank savings card. After confirmation, the lending institution will repay part of the housing loan in advance, and then use the interest-bearing repayment method determined in the original loan contract as "interest first, capital later"