Nowadays, there are many people who borrow money to buy a house, but most of the friends who borrow money to buy a house only pay attention to the related things. Many friends don't know anything about repayment, and they start to worry when they really face repayment. Since everyone has read this article, what are the ways of mortgage repayment?
Nowadays, there are many people who borrow money to buy a house, but most of the friends who borrow money to buy a house only pay attention to the related things. Many friends don't know anything about repayment, and they start to worry when they really face repayment. Since everyone has read this article, what are the ways of mortgage repayment? What is the most cost-effective way to pay off the mortgage in a few years?
What are the mortgage repayment methods?
1, equal principal and interest repayment. Matching principal and interest repayment method is to add up the total principal and interest of mortgage loans and then distribute them evenly to each month of 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. Repayment of equal principal. It can also be called equal repayment with interest. In this way, the lender will allocate the principal to each month and pay off the interest between the previous trading day and the repayment date. There is money to be paid back next month, and it will gradually decrease afterwards.
3. One-time repayment of principal and interest. The bank's stipulation for this repayment method is that if the loan term is within one year (including one year), the principal and interest will be repaid at the maturity, and the interest will be paid off together with the principal. However, with the change of repayment method, one year is expected to be extended to five years. Therefore, this method is strictly recognized by banks.
4. Pay interest and principal on schedule. After consultation with the bank, the lender may decide to set different repayment time units for the repayment of loan principal and interest. That is, decide to repay once a month, quarterly or annually.
5. Principal repayment plan. After consultation with the bank, the lender repays the principal at least 6,543,800 yuan each time, and the interval between two repayments is no more than 654.38+0.2 months, and the interest can be repaid monthly or quarterly.
What is the most cost-effective way to pay off the mortgage in a few years?
1, this mortgage should consider using provident fund or commercial loan. If you use the provident fund, it is not recommended for buyers to pay off the provident fund loan in advance, because the interest rate of the provident fund loan is very low, and the ratio of inflation and currency depreciation is more than this every year.
2. Secondly, for commercial loans, it is reasonable for bank staff to suggest paying off the loan within the first third of the total repayment time if it is the repayment method of equal principal and interest. Because of the repayment method of equal principal and interest, the monthly mortgage payment in previous years was almost always to pay interest, and the principal was very small. The sooner you pay back the money in advance, the more money you save, and you don't have to pay so much interest.
3. If it is the repayment method in the average capital, it is reasonable for the bank staff to suggest paying off the loan within the first half of the total loan time. Because the principal repaid by average capital repayment method is fixed, the proportion of principal is relatively large, and the interest is much less than the equal principal and interest.
The above is the way of mortgage repayment. Pay off all the most cost-effective contents of mortgage within a few years. Now the most important and commonly used repayment methods are equal principal and interest repayment and equal principal repayment. If you go to the bank to apply for a loan, the bank staff will also let you choose one of the two ways, so you should know the two ways clearly, so it will be clear at a glance when choosing.
How to repay the mortgage is the most cost-effective
The following three methods are the most cost-effective:
1, repayment by installment
Installment repayment is one of the repayment methods of personal housing commercial loans. If we choose the installment repayment method, then we can divide the loan into five stages and choose the principal to be repaid in each stage according to our actual situation. For example, people who just start a business can choose to pay less in the early stage and pay more in the later stage. It calculates the repayment amount at each stage according to the average capital or equal principal and interest. Generally speaking, we need to pay less interest.
2. Biweekly payment and repayment methods
Biweekly repayment method is to change the original mortgage repayment from once a month to once every two weeks. Although the repayment pressure has not changed every month, the repayment frequency has increased, which leads to the accelerated reduction of the principal, so the repayment interest can be saved. It is more suitable for people with stable income. Biweekly payment will be very troublesome for our capital arrangement, and the penalty interest will be higher.
3. Portfolio loan
When applying for portfolio loans, provident fund loans and commercial loans can be allocated reasonably. Maximize the use of provident fund loans to extend our loan life. Try to increase the monthly repayment amount of commercial loans and reduce the life of commercial loans. Because the interest on provident fund is low, the interest on commercial loans is high. This can save our repayment interest.
Extended data
1. Which repayment method is more cost-effective, the average principal and the equal principal and interest of the housing loan?
1. average capital repayment method pays less interest than the equal principal and interest repayment method. When repaying in advance, both repayment methods calculate the proportion of interest payment according to the amount of principal occupied, so the difference is not very big.
2. By comparing the two repayment methods, in a sense, if you buy a house to repay the loan, the average capital method, as a repayment method with decreasing interest, may not be more advantageous than the equal principal and interest method, but which repayment method you want to choose depends on your actual situation.
I want to borrow money to buy a house, but I don't know which repayment method is the most suitable and the interest is the least.
Category: residential house purchase and family house purchase
Analysis:
Less interest is the repayment of average capital.
At present, the repayment methods of bank personal housing loans mainly include equal principal and interest and average capital. Matching principal and interest repayment method repays the loan principal and interest in equal amount every month, with the interest decreasing month by month and the principal increasing month by month; In the average capital, the repayment amount is decreasing, the principal remains unchanged in the monthly repayment, and the interest decreases month by month.
The main difference between the two is that the former has the same repayment amount in each installment, that is, the total monthly principal plus interest is the same, and the repayment pressure of customers is balanced, but the interest burden is relatively large; The latter is also called' decreasing repayment method'. The monthly principal is the same but the interest is different. The early repayment pressure is great, but the future repayment amount is gradually reduced, and the total interest burden is less.
Now, people who know these two ways think that it is cost-effective to choose average capital, because they choose to pay more principal and interest with equal amount, while average capital pays less interest. Moreover, they think that once they repay the loan in advance, they will find that the equal amount of principal and interest will pay more interest, not the principal, and they will feel great losses.
Generally speaking, "equal principal and interest" will pay more interest than "decreasing repayment". Based on the 20-year loan of 65,438+10,000 yuan, the former will pay more than 800 yuan of interest than the latter. If you borrow 400,000 yuan in 20 years, you have to pay an extra interest of 800× 40 = 32,000 yuan. It seems that banks overcharge interest. In fact, with the reduction of principal, the average capital repayment method can speed up repayment, withdraw funds as soon as possible, reduce operational risks and help prevent risks.
In practice, the matching of principal and interest is more beneficial for customers to master and repay. In fact, many customers prefer to choose "equal repayment method" after comparison, because the monthly repayment amount of this method is fixed, which is convenient for customers to remember and the repayment pressure is relatively balanced, which is not much different from general funds. Because these customers also see that the use value of funds varies with time, simply speaking, the repayment method of equal principal and interest will naturally pay more interest because it takes a long time to occupy the bank principal; With the reduction of the principal, the repayment method of average capital occupies the principal of the bank for a short time, and the interest naturally decreases, so there is no problem that the bank earns more interest and suffers.
The two loan methods are essentially the same, and there is no distinction between advantages and disadvantages. Only when the needs are different will there be different choices.
Because the repayment pressure of equal principal and interest repayment method is balanced, but it needs to pay more interest, it is suitable for people with certain savings, but their income may be flat or declining, and their living burden is increasing day by day, and there is no early repayment plan.
The repayment method in average capital, because the lender can repay the principal quickly, can pay less interest, but the early repayment amount is large, so it is more favorable for people with higher income at present, or those whose income is expected to increase significantly in the near future and are ready to repay in advance.
The latest news:
There are usually two repayment methods of mortgage: matching principal and interest and average capital. The "big loser" who borrows mortgage from China Construction Bank will have two new repayment methods to choose from: equal increase and equal decrease, in which equal decrease can pay less interest than the original two methods.
CCB provides four flexible repayment methods for personal mortgage customers, which is the first in China.
The reporter learned from the Real Estate Credit Department of China Construction Bank that CCB will launch these two new repayment methods nationwide, but due to the computer system in actual operation, it is impossible to achieve national synchronization. At present, Beijing has begun to implement it, and Shanghai will soon be able to handle it, but there is no clear timetable. In addition, customers who are about to apply, are applying or have completed repayment can choose a new repayment method.
According to reports, the repayment methods of "equal increase" and "equal decrease" mean that the "negative man" can agree with the bank on the interval and amount of increasing or decreasing repayment, and repay the loan with a fixed amount in the first installment, and then repay the loan monthly according to the interval and the corresponding increasing or decreasing amount, in which the interval is at least 1 month.
Take a commercial mortgage with a total amount of 300,000 and a term of 20 years as an example. If the agreed interval is five months and the decreasing amount is 30 yuan, according to the current interest rate level, the method of "equal decreasing amount" can pay less interest of 3 1, 0 18 yuan than the method of "equal principal and interest" and less interest of 1, 346 yuan than the repayment method of average capital.
The biggest feature of these two new repayment methods is that the "negative person" can flexibly adjust the interval or progressive amount according to the change of his repayment ability, thus alleviating the economic pressure in a specific period or paying less total interest. For example, if your income increases in a certain period, you can increase the progressive amount and shorten the interval, so that the installment payment will increase and the total interest will be paid less; And if your income level drops, you can reduce the progressive amount and shorten the interval, so that the installment payment is reduced and the repayment pressure is naturally lighter.
What are the two repayment methods for commercial loans? What is the difference between them?
Commercial loans are divided into: equal principal and interest and equal principal repayment.
The difference between the two:
1. The prepayment method is different.
Matching principal and interest: the monthly repayment is fixed, which is beneficial to personal repayment arrangement. The prepayment amount is less than the average capital, and the prepayment pressure is relatively small. Average capital: the principal paid every month is fixed, and the interest paid every month is reduced, so the pressure of early repayment is great.
2. The repayment interest is different.
The interest of equal principal and interest is more than the interest of average capital. In the average capital, due to the relatively large repayment of priority principal, the total interest amount is far less than the equal principal and interest, which is also conducive to early repayment.
3. Different basic meanings
Matching principal and interest means that the sum of "principal and interest" of monthly repayment remains unchanged. Average capital, that is, in the total monthly repayment, the principal part remains unchanged and the interest is calculated separately.
Extended data
Three forms
1. Ordinary commercial loan (no need to use the buyer's loan to pay off)
2. Quick commercial loan (the buyer's loan needs to be paid off, and the guarantee institution provides phased guarantee).
3, provident fund loans (many procedures, time-consuming, relatively risky for the seller)
operation sequence/order
1. The borrower and the developer pay 30% of the house purchase price at the same time when signing the house purchase contract;
2. Submit relevant materials to the law firm for review;
3. The bank receives the Legal Opinion issued by the approved law firm, and signs a loan contract, mortgage contract and guarantee contract with the purchaser;
4. Handle mortgage registration, notarization of home insurance and contract according to relevant information, and issue loans.
5. The borrower repays the loan by equal repayment. For the outstanding loan principal, the borrower can repay it in one lump sum, and interest will still be charged in the current period of prepayment. No fines will be charged.