In fact, these reports are not misinformation, but different situations are suitable for different people, and not all drugs can cure them. So what the hell is matching principal and interest with average capital?
1. Matching principal and interest and introducing average capital.
1, equal principal and interest: monthly payment = principal+interest, and the monthly payment is the same (on the premise that the benchmark interest rate remains unchanged).
2. Average capital: monthly payment = principal+interest, the monthly principal is equal, the interest decreases with the principal, and the monthly payment decreases month by month.
Two. Calculation method of equal principal and interest and equal repayment of average capital: monthly repayment amount = loan principal × [monthly interest rate× (1+monthly interest rate) repayment months ]=[( 1+ monthly interest rate) repayment months]
Average capital repayment method: loan principal/loan term+[loan principal-loan principal/loan term *(N- 1)]* annual interest rate/12.
Seeing these calculation formulas, does it make people's minds blank? It is a headache to distinguish between "equal principal and interest" and "average capital". This formula is both a "power" and a "power", not to mention the calculation result. Unfortunately, in order to facilitate everyone to calculate the monthly payment, some platforms have developed a "mortgage calculator", which can easily calculate the monthly payment just by inputting key factors such as loan amount, loan term and execution interest rate, and choosing a good repayment method. Such a "mortgage calculator" is easy to find in Baidu.
Figure 1 and Figure 2: 1, with a loan amount of 500,000 yuan;
2. The loan term is 240 months (20 years);
3. The benchmark interest rate is 4.9% (in the chart, the monthly sum is used as a micrometer, and the annual interest rate of 4.9% is converted into the monthly interest rate of 4.08333‰).
Third, how to choose a cost-effective housing loan?
As shown in Figure 1 and Figure 2, the "accumulated interest" of equal principal and interest is 285,000, and the "accumulated interest" of average capital is 246,000. The same 500,000 years seems more cost-effective in terms of average capital. In addition, the bank defaults to the repayment method of equal principal and interest with higher interest when the customer does not specify it. In recent years, the media also reported that many banks are unwilling to let customers choose "average capital". But is this really the case?
In fact, whether it is equal principal and interest or equal principal repayment, the calculation method of interest is to multiply the principal balance borrowed from the bank by the corresponding monthly interest rate (agreed annualized interest rate/12 months) to calculate the interest that you should repay to the bank in the current month. In other words, the interest rates of the two different repayment methods are actually the same. The reason why the calculated interest is different is actually because you are paying back the principal every month. The more principal you borrow, the more interest you have to pay back. If you borrow less principal, you will have to pay less interest.
To be more intuitive, let's analyze the data in Figure 1 and Figure 2. The current principal in figure 1 and figure 2 with the number of periods 1, the equivalent principal repayment in figure 1 is 1230.56, the equivalent principal repayment in figure 2 is 2083.33 and the current interest in figure 1 and figure 2 is 204/kloc. The matching principal and interest is about 852 yuan less than the monthly payment in the first phase of the average capital repayment method, and the interest is 204 1.67 yuan, but the principal is paid back by 852 yuan. Since the interest of the bank is calculated according to the balance of the principal, the principal has been overpaid by 852 yuan since the first period, so the interest on average capital will be less than the interest on the same principal and interest since the second period, which is equivalent to prepayment every month, which is naturally less than the final interest without prepayment.
Through the above calculation, can we see that the two different repayment methods are fair? There is no question of which is more cost-effective. Banks are unwilling to take the initiative to choose the average capital because, compared with the equal principal and interest, the monthly repayment pressure in the average capital is great, which is not suitable for customers who just bought a house; In addition, the monthly payment in the average capital is decreasing every month, which makes it inconvenient for customers to remember the repayment amount; In addition, the calculation formula is complex, ordinary customers simply can't understand it, and bank credit personnel are busy and unwilling to explain more, which leads to the average capital repayment method being "deified" for a time. It is not designed by the bank to earn more interest, but in practice, when applying for a loan interview, the bank offered to choose the average capital repayment method, and the bank would accept it.
Therefore, if your initial funds are not too tight, you can choose the average capital method to reduce all interest expenses; If the funds are tight in the early stage, you can choose the way of matching principal and interest, so that although there are many interest expenses in the early stage, the financial pressure will be small. In the case of available funds, appropriate prepayment can also achieve the effect of reducing interest expenses.