&# 8203;&# 8203;&# 8203;&# 8203;&# 8203;&# 8203; Buying a house is a major event in many people's lives. Because the house price is too expensive, many people will choose to buy a house with a loan. However, changing the loan year by year will produce high interest. Therefore, some people will choose to repay the loan in advance when they have money. So what is the prepayment interest of commercial loans in 2019? How is it more cost-effective to repay? This is the problem that the lender needs to find out before repayment. It is he who will suffer the loss. This article brings you the calculation method of prepayment interest of commercial loans in 2019 and the most cost-effective method of repayment for your reference.
How to calculate the prepayment interest of 2019 commercial loan?
There are two types, one is full prepayment, the other is partial prepayment.
Full prepayment refers to the one-time settlement of the principal and interest of the mortgage. After all prepayments are made, the interest is calculated until the day when the principal and interest of the bank are paid off. In other words, the interest is calculated as long as you borrow the money from the bank.
Partial prepayment refers to the repayment of only part of the principal and interest of the loan, and the remaining principal and interest are not settled. For the unsettled loan principal and interest, the interest shall be implemented according to the loan interest rate agreed in the original loan contract (if there is a discount, it will always be preferential).
For part of the outstanding loan balance due in advance, there are two repayment methods to choose from. One is to shorten the repayment period of the loan and the amount of monthly payment is inconvenient; Second, the repayment period of the loan remains unchanged and the amount of monthly payment is reduced. In contrast, the first one can save more interest.
Note: it is not allowed to repay the loan in advance within half a year. 1% liquidated damages shall be paid for early repayment. Buyers need to check the requirements for early repayment in the loan contract and pay attention to whether they must pay certain liquidated damages for early repayment.
How is it more cost-effective to repay?
1. When signing the loan contract, you can enjoy the interest rate discount of 7% to 8.5%
Since we have enjoyed the interest rate discount with lower discount, we are now in the channel of interest rate reduction. If the central bank does not cut interest rates during the year, even if it is implemented according to the recent interest rate on January 1 next year, the interest rate will only be lower than that in the early stage. It is inappropriate to prepay the mortgage.
2. Property buyers whose repayment period of equal principal has passed 1 / 3
Since the equal principal is to divide the total loan amount equally into the cost, the repayment interest is calculated according to the remaining principal. In other words, the later this repayment method is, the less principal is left, so the less interest is generated. In this case, when the repayment period exceeds 1 / 3, the borrower has repaid nearly half of the interest, and more principal is repaid in the later stage. The level of interest has little impact on the repayment amount. Mortgage prepayment is not recommended.
3. Property buyers whose principal and interest have been repaid in the medium term
Equal principal and interest repayment adds up the total principal and interest of the mortgage loan, and then apportions it evenly to each month. The monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled month by month. In other words, the proportion of principal in the monthly repayment amount increases month by month and the proportion of interest decreases month by month. By the middle of the repayment period, most of the interest has been repaid, so it is of little significance to prepay the mortgage.