September 11th, 2010 | 
Author: The face of increasingly complex mortgage repayment methods, choose the manner in which the most savings, which means most suited to their needs, which requires 7 currently on the market to be a more basic way of mortgage repayment. China Construction Bank and China Bank of Communications to promote “equal increments” and “equal decreasing” Two new repayment methods; Pudong Development Bank propaganda “quarter also” mortgage repayment; Merchants Bank is playing at least seven kinds of mortgages also available methods section banner.
Principal and interest equal repayment
This is the most common long-term recommendation is the way most banks. Aggregate principal amount of the mortgage loan amount and interest are added to the repayment period and the average share in each month. People as repayment, a fixed amount each month, returned to the bank, but the monthly amount of the monthly increase in the proportion of principal, interest, the proportion decreased month by month.
For example, assuming the need to 1 million yuan of bank loans, the repayment period of 20 years, according to the latest current 7.20% interest rate, selection matching principal and interest loans, also about 7873 yuan per month. The initial two to three years, approximately 80% of 7,873 yuan more than the return of part of the bank rate.
Using this method of repayment, the same amount each month, as lender, the operation is relatively simple. Take the same amount each month is also to arrange payments. Especially in the steady state income families buy a house from the living and economic conditions do not allow too much initial investment, can choose this approach. Civil servants, teachers and other professional income and job opportunities are relatively stable population, it is suitable for this method of repayment.
However, it is also flawed, because interest will not be reduced with the return of the principal amount of bank funds used for a long time the total interest payments over the following equal to the principal repayment method described high.
Equal principal repayment
The so-called equal principal repayment, also known as the clear benefits, such as the repayment method ranging. Will be apportioned to the principal lenders within a month, while the previous day to pay the repayment of this interest between China and Japan. Repayment of principal and interest of this approach is relatively equal, the lower the total interest payments, but the pre-payment of principal and interest are more affordable monthly payments reduced.
For example, the same one million yuan from a bank loan, the repayment period of 20 years, according to the latest current 7.20% interest rate, selection of principal payments equal the monthly repayment of principal amount of 4167 yuan or so banks, the first month interest rate 7170 yuan or so, the first month to repay a total of about 11,337 yuan bank, then the same monthly repayment of principal, interest gradually reduced with the return of principal.
Use equal principal repayment, the beginning of each month to pay principal and interest than the equal weight. Especially in the larger loans circumstances, a difference may be up to 1000 yuan. However, over time, gradually reduce the repayment burden. This approach is very suitable for high current income, but income has been estimated that in the future will reduce the crowd. In fact, many middle age or older after an off time Shiye hard work, a certain economic basis, taking into account older, retired Deng income Kenengsuizhe reduce other factors, can choose to repay in this way.
A debt service
Previously, banks such repayment requirement is that the loan period of one year (including year) below, the implementation of a debt service due, with the clear advantage. However, with the repayment changes, the maximum one-year period is expected to extend to 5 years. Strict examination and approval of the way banks are generally open only to small short-term loans.
This method of repayment, the operation is simple, but, to adapt to the crowd was fairly narrow, we must note that this method is easy to repay the lender to force a lack of external force, causing credit damage. Use of such loans, the lender has the best ability to better self-arrangement.
Pay interest on time repayment of principal
Lenders and banks through consultation, may decide to return for the loan principal and interest payments set different time units. That is decided by monthly, quarterly or annual intervals such repayment. In fact, according to different lenders is the financial situation of each month to repay the money to make up together a few months also. China Merchants Bank launched the “quarter also” belong to the scope of business.
To some extent, it is a variant of equal repayments of principal and interest. For example, the 20-year, 100 million in loans, according to the latest current 7.20% interest rate, selection matching principal and interest loans, also about 7873 yuan per month. If lenders choose a more flexible way, you can choose also 15,746 yuan per month.
This method is applicable to unstable income people, in many cases directly linked to income and workload of young people have this tendency. Different jobs each month, the state determines the income of the month, to share the pressure of a month into a few months, can reduce this part of the group repay arrears situation.
Equal increments and equal decrease
The two repayment methods, there is no essential difference. At present several major banks as the main push mode, it is the way of repayment of principal and interest equal another variant. It detailed the repayment period was divided, each division units, repayment of principal and interest equal to equal. The difference is that, each time dividing unit to increase the repayment amount may be equal or equal decrease.
To 1 million yuan of bank loans, the repayment period of 20 years, according to the latest current 7.20% interest rate, select the matching principal and interest loan, the lender without prepayment, this 20-year repayment period is 7873 yuan per month . If you choose to equal increments repayment, assuming the 20 years into the five stages of attainment, then the first 4 years may be as long as more than 4000 yuan a month, the second four-year repayment amount to more than 6000 yuan per month, the first 3 4 years to more than 8000 yuan monthly repayment amount, and so on. Equal decrease on the contrary, the first 4 years need also more than 12,000 yuan per month, then 4-year decrease of 2,000 yuan each, until the last four years to more than 4000 yuan per month.
Equal annual increments for the current repayment capacity is weak, however, have expected a progressive increase in the future of people. Many young people need to buy a house, and work performance is good, although the burden of mortgage revenue more difficult, but after taking into account the future promotion of a substantial increase in income can be increased by equal payments. On the contrary, if the anticipated revenue will be reduced, or the current economy is off, you can choose matching decline.
Apply an expert as saying bank loans: Bank loans not the most cost-effective, because you either choose the kind of repayment method, interest should be paid a lot of money, but help to choose the right method of repayment, the full utilization of funds and slow Less repayment pressure. Therefore, according to their repayment method to choose the right side is the best strategy.
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Tags: bank loans, Business, credit damage, debt service, mortgage loan, mortgage repayment methods