What is equal principal and interest repayment?
In fact, if you look at the first-hand house, the sales girl will give you this calculation, because the monthly repayment amount is fixed. Compared with another way, this amount is smaller and more easily accepted by buyers.
But do you know the real repayment situation of equal principal and interest? Take the loan for 20 years, with a loan of 6,543,800 yuan and a monthly repayment of 7,485.2 yuan as an example. Pay back 7485.2 yuan to the bank every month, including 5458.33 yuan of interest and 2026.86 yuan of principal. In other words, most of the money you repay is bank interest, and the principal is relatively small.
By the middle of the repayment period, the interest of the previous 10 year has been almost paid back, but a large part of your principal has not been paid back, which must be paid back. Even if your conditions are much better after 10, you can repay the loan in advance, but the rest is basically the principal with little interest, so it is meaningless to repay the loan in advance.
In bank loans, I will basically tell you this repayment method, because in this way, the interests of the bank will be maximized. Most families, since they have borrowed for 20 years, can't repay their loans in a few short years, but they can usually repay them after 10 years. In this way, the interest income of banks will be reduced a lot. So in this way, the bank will let everyone pay the interest for the previous year 10, but the principal will not be reduced. Even if there is money, if it is paid back, the interest of the bank will be collected by more than half, and there is no loss for the bank to repay the loan in advance.
What is equal principal repayment?
The problem now is that banks will not take the initiative to propose the repayment method of average capital, and basically only say the former.
Or take a loan for 20 years, with a loan of 6,543,800 yuan and a monthly repayment of 9,625 yuan. The monthly repayment is more than 2 140 yuan, of which the principal is 4 166.67 yuan and the interest is 5,458 yuan. However, since the second month, only 9,602.26 yuan has been repaid. Because the principal was repaid last month at 4 166.67 yuan, the interest will be recalculated this month, so 23 yuan's interest will be less. By analogy, the later, the less repayment pressure.
The most important thing is: when you want to repay in advance, for example, five years later, because of the way you choose, the principal is much less than the previous way, and the principal paid in advance is partially offset more, so when you recalculate the interest, the interest expense will be much less, and the interest will be nearly 10 thousand yuan every year! Even if you don't repay the loan in advance, you will still have to pay140 thousand interest in 20 years! However, the pressure of prepayment in average capital will be greater.
Let's talk about an episode first: a few days ago, I accompanied my friends to the bank to sign a loan, and at the same time, there were 7-8 people, all of whom were housing loans. We came in second, and the woman in front signed it in five minutes. We watched the principal and interest equal. The bank staff said nothing about the repayment method.
It's our turn When we offered to repay according to the average capital, the man took us to the president's office. /kloc-after more than 0/0 minutes, my friends and I decided whether to stick to our choice-average capital. We walked back to the shop assistant, who was already helping others. We read it, and we all signed the equal principal and interest.
Then it was our turn, and we offered to repay the principal in equal amount. At this time, the person next to us asked us: "Is there any other repayment method?" The clerk immediately interrupted us, saying that it was because we had a better life and were able to pay more. I understood what he meant and told us to stop talking, so we just signed a few words and left. The bank is very reluctant to let us choose this method because the interest is much less. If one person saves 20,000-30,000 interest, 10 means 200,000-300,000 people, 100 people?
People like me, who belong to the general class, mostly buy a house, which is a big deal. So after signing the contract, we must study more bank loans. In fact, this calculation shows that reasonable allocation of bank loans can save interest expenses of more than100000 yuan, or even more. Converted into house prices, it is nearly 1,000 yuan less/flat, so why not?
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(The above answers were published on 2016-08-11. Please refer to the actual situation for the current relevant procurement policies. )
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