There is nothing to lose by repaying the average capital in advance. First of all, the biggest feature of equal principal repayment is that the less interest in the later period, the less repayment pressure. Therefore, if the average capital is used to repay one-third of the mortgage, the interest will be repaid by almost half, and more is the later principal. At this time, whether to repay in advance actually has little effect.

Average capital refers to a repayment method of loans. During the repayment period, the total amount of loans is divided into equal parts, and the same amount of principal and interest generated by the remaining loans of the month are repaid every month. In this way, because the monthly repayment amount is fixed and the interest is less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is less and less.

Calculation formula of average capital loan:

Monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.

Microfinance and low interest rates:

For example, the loan is 6.5438+0.2 million yuan, the annual interest rate is 4.86%, and the repayment period is 654.38+00 years;

Matching principal and interest:1repayment after 0 years 15 1750.84 yuan, with total interest of 3 1750.84 yuan;

Average capital:1repayment after 0 years149,403.00 yuan, with total interest of 29,403.00 yuan;

The difference between them: 2347.84 yuan/10 year, only 235 yuan a year.

For example, the loan is 6.5438+0.2 million yuan, the annual interest rate is 4.86%, and the repayment period is 20 years;

Matching principal and interest: repayment after 20 years 187846.98 yuan, with total interest of 67846.98 yuan;

Average capital: repayment after 20 years178,563.00 yuan, with total interest of 58,563.00 yuan;

The difference between the two: 9283.98 yuan /20 years, only 465 yuan a year.

For example, the loan is 3 million yuan, the annual interest rate is 4.86%, and the repayment period is 30 years;

Matching principal and interest: 57056 18.40 yuan will be repaid after 30 years, and the total interest will be 27056 18.40 yuan;

Average capital: after 30 years, the repayment is 565,438+093,073.80 yuan, and the total interest is 265,438+093,075.00 yuan;

The difference between them is nearly 5 1 1,000 yuan. The more loans, the longer the service life, and the more equal repayment of principal and interest than in average capital.

For the public.

The average capital method is more suitable for lenders with strong repayment ability some time ago, because the repayment amount in the early stage is large, and then it decreases month by month. Of course, some older people are also more suitable for this way, because their income may decrease as they grow older or retire.

If the loan is less than 200,000 yuan and the service life is less than 10 year, the difference between the principal method and the principal and interest method will not be too big.

If the loan exceeds 654.38+0 million and the service life exceeds 20 years, it needs careful consideration, and the interest gap in the later period may be as high as several hundred thousand yuan.

The disadvantage of the average capital method is that the pressure of prepayment is great, especially when the amount is relatively large. However, due to the monthly decline, it is more relaxed in the later period. If you have extra income to repay in advance, or use the annual provident fund to offset the loan principal, you can pay off the loan faster.