Matching principal and interest repayment needs to pay more interest than matching principal repayment. At the beginning, interest accounts for the main part of monthly repayment, and with the extension of repayment time, the proportion of principal is also increasing. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way and facilitate each family to determine the repayment ability according to their own income.
The following example illustrates the equal principal and interest repayment method.
Suppose the borrower obtains a personal housing loan of 200,000 yuan from the bank, with a loan term of 20 years and an annual interest rate of 4.2%, and pays the principal and interest on a monthly basis. According to the above formula, the monthly repayment of principal and interest is 1233.5438+04 yuan.
The above results only give the sum of the principal and interest payable each month, so it is necessary to decompose this sum of principal and interest. Still on the basis of the above example, one month is one installment, the balance of the first loan is 200,000 yuan, the interest payable is 700 yuan (200,000× 4.2%/12), the principal is 533. 14 yuan, and the bank loan is still 19466.86 yuan; The interest payable in the second phase is (199466.86× 4.2%/12).
Refund method
That is to add up the total principal and interest of the mortgage loan, and then distribute it evenly to each month of the repayment period. The monthly repayment amount is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. This method is the most common and recommended by most banks for a long time.
Matching principal and interest repayment method refers to the borrower's equal repayment of loan principal and interest every month, in which the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled every month.
The average capital repayment method means that the borrower repays the loan principal with the same amount (loan amount/loan months) every month, calculates the loan interest according to the remaining loan principal at the beginning of the month, and settles it every month, and the sum of the two is the monthly repayment amount.