What is prepayment?
Early repayment refers to the behavior of the borrower to repay the loan before the repayment period.
In short, the mortgage that is not in a hurry is repaid first, and the prepayment is mainly to save interest.
What are the types of prepayment?
Type 1: Full repayment in advance.
I will pay off the remaining loan in one lump sum. Total interest is the amount of interest before prepayment.
Type II: Partial prepayment, constant monthly payment and shortened repayment period.
That is, by repaying part of the loan, the total loan amount will be reduced, and the monthly mortgage amount will remain unchanged, so that the mortgage can be repaid as soon as possible.
The third type: partial prepayment, reducing monthly payment, and the repayment period remains unchanged.
That is to say, by repaying part of the loan, the total amount of the loan is reduced, or the loan term remains unchanged, but the monthly payment is reduced.
Fourth: partial prepayment, reducing monthly payment and shortening repayment period.
That is, by repaying part of the loan, the total loan amount is reduced, the loan period is also reduced, and the monthly payment is also reduced.
Fifth: partial prepayment, increasing monthly payment and shortening repayment period.
That is, by repaying part of the loan, the total loan amount is reduced, the loan period is also reduced, and the monthly payment is also reduced.
Let me help you calculate, sir:
What kind of prepayment can save interest?
Amin bought a suite in June last year at 5438+ 10, with a down payment of 30%, a loan amount of 700,000 yuan and a loan period of 20 years.
According to the latest benchmark interest rate of 4.9%, the monthly housing supply is 4581.1yuan, of which the interest is 1664.44 yuan, and the total interest expenditure in 20 years is as high as 399,466 yuan. At present, Amin has about 200,000 spare cash in his hand, and he is going to take out part of it for prepayment. Mr. Accountant helped him compare the five prepayment methods in the current market.
Because 54,973.3 yuan has been paid back before, of which the principal is 2 1 143.97 yuan and the interest is 33,829.33 yuan.
First, pay off the remaining loans in one lump sum.
If all repayments are made in advance, 6,865,438+0,628.03 yuan, including 2,772 yuan of interest, needs to be repaid this time.
Compared with the original, the interest saved = 399,466-33,829.33-2,772 = 362,864.67 yuan, totaling 362,900 yuan.
Second, the monthly payment remains unchanged and the repayment period is shortened.
If 6,543,800 yuan is repaid in advance, the current monthly payment level will still be maintained, that is, 458,654.38+ 0.654.38+065.438+0 yuan, and the loan period in 2005 will be shortened to 654.38+9 months.
Compared with the original, 458 1 has 1474. 1 12 yuan interest every month.
Deposit interest = 399466-33829.33-985.73 *161month = 128303.63 yuan, that is, 128303 yuan.
Third, reduce the monthly payment and keep the repayment period unchanged.
If 6,543,800 yuan is repaid in advance, the loan term will remain unchanged, leaving 654.38+ 09 years, and the monthly payment will be reduced to 3,904.48 yuan.
Compared with the original, the monthly payment is reduced, but the interest is increased. Of the 3904.48 yuan, 1564.09 yuan is interest.
The interest saved = 399466-33829.33-1564.09 * 202 months =49690.73 yuan, that is, 49700 yuan.
Fourth, reduce the monthly payment and shorten the repayment cycle.
Repayment in advance is 654.38 million yuan, monthly payment is reduced to 4547.8 yuan, and repayment period is shortened to 654.38+08 years.
Compared with the original, the total interest will be 239,704.89 yuan.
The interest saved = 399466-33829.33-239704.89 =125931.78 yuan, namely 125900 yuan.
Fifth, increase the monthly payment and shorten the repayment cycle.
The prepayment is 6,543,800 yuan, the monthly payment is increased to 6,639.46 yuan, and the repayment period is shortened to 654.38+ 00 years.
Compared with the original, the total interest will be 138 16 1.47 yuan.
The interest saved = 399466-33829.33-138161.47 = 227475.2 yuan, that is, 227500 yuan.
Compare these five methods one by one:
362,900 yuan > 227,500 yuan >128,300 yuan >125,900 yuan > 49,700 yuan
From this point of view, it is the most economical to pay off at one time. In fact, it is to increase the monthly payment and shorten the repayment period. In Amin's case, he can't pay off in one time, but even if he repays in advance, he has more money in his hand. You can consider increasing the monthly payment and shortening the repayment period.
Of course, the most important thing to choose which repayment method is to look at your own economic situation and do what you can.
Have you worked out which method suits you and how much interest you can save?
(The above answers were published on 20 16-0 1-25. Please refer to the actual situation for the current purchase policy. )
Click to view more real estate information.