What are the repayment methods of commercial mortgage loans?
1. Equal principal and interest repayment method
Features: the monthly repayment amount is the same. In essence, the proportion of principal will increase month by month, and interest will decrease month by month. However, under the same loan term and amount, the total interest of equal principal and interest is much higher than the interest of average capital.
Suitable for the crowd: this method pays the same amount every month, which is more suitable for families with financial pressure, especially young people. With the growth or promotion of age, income will increase, repayment pressure will decrease, and living standards will naturally improve.
2. average capital Repayment Law
Features: the repayment amount will decrease month by month, because its principal is distributed evenly according to the total month, and the monthly repayment amount is formed by adding the principal interest, so the repayment amount in the early stage will be more, and then it will decrease month by month, and the less it is.
Suitable for the crowd: this kind of loan method has a relatively high repayment pressure in the early stage and then decreases month by month, which is more suitable for people with strong repayment ability. Of course, some older people with certain economic ability are also more suitable for this method.
What is the best way to repay the mortgage?
As can be seen from the above, the repayment interest of average capital is less than the interest of equal principal and interest. The prepayment of the two is calculated according to the principal and the returned interest, and the difference between them is not very big. When choosing the repayment method, everyone should decide according to personal needs and economic conditions.
Abstract: Well, it is enough to know about the repayment methods of commercial mortgage loans and which kind of mortgage loans are good. If you need more information, please continue to pay attention to Qijia. We will provide you with better and more exciting content in the future.