Want to buy a house, equal principal and interest and average capital who is more cost-effective? Can I repay the loan in advance if I have money?

Now when it comes to marriage, people often say that marriage has three children: a house, a car and a ticket. Of course it was a joke, but it really stumped many people. Among them, the house can be said to be the biggest headache for everyone, and it is generally the most expensive. China's mortgage loan for house purchase is generally repaid in two ways: equal principal and interest and average principal. Which is more suitable for you? If you have money in the future, is it feasible to repay the loan in advance?

Which of the two repayment methods is more suitable for you?

I bought a house with a friend last week. During the face-to-face signing with the bank, his bank mortgage loan chose the repayment method of equal principal and interest, which was much higher than the average capital. Why didn't he choose the average capital method with less interest to repay? Everyone should know the difference between the two.

Matching principal and interest: Matching principal and interest means that within the loan term, the monthly repayment amount is unchanged, the proportion of principal in the monthly repayment amount is increasing, and the proportion of interest is gradually decreasing.

For example, if you borrow 6,543,800 yuan to buy a house in a city for 30 years, you will repay the principal and interest in the same amount. According to the average mortgage interest rate, the 30-year principal and interest will be 208,4881yuan, of which the interest is 108488 1 yuan, and the monthly principal and interest will be RMB.

Average capital: As the name implies, during the loan period, your loan amount is divided into several months on average, and the principal repaid each month is the same. Monthly repayment is the repayment method of repaying the principal every month, and the remaining unpaid principal generates interest in the current month. This method is characterized by less and less outstanding principal and less interest in each period, but the pressure of repayment in the early stage is greater.

Take the loan 1 10,000 yuan as an example. If the average capital is adopted, the 30-year principal and interest will be 1 854,367 yuan, of which the interest is 854,367 yuan, which is more than 230,000 less than the interest of the same principal and interest. However, the early repayment pressure is relatively high. The repayment in the first month is about 75 1 1 yuan, and the repayment amount after the132nd month is less than the equal principal and interest.

My friend chose equal principal and interest because of the great pressure in the early stage of the average capital law, so he would rather pay more interest and repay in advance when he has money.

Is it feasible to repay the loan in advance?

There are also some friends who choose to buy a house with a loan. It may be that the capital turnover was not open at that time, and I wanted to repay the loan in advance after the funds were in place. So is it feasible to repay the loan in advance? This also depends on the situation!

If there is no money plan in the short term and the financial management ability is insufficient, everyone can still choose to repay the loan in advance. The national average mortgage interest rate is theoretical. As long as everyone's return on investment exceeds this value, it is profitable not to repay the mortgage in advance for investment. But it is not easy to invest more than the rate of return, which is even more difficult for some people with poor financial management ability.

In addition, there are several points that you need to pay attention to when repaying the loan in advance. If you apply for early repayment, some banks require you to apply for a loan at least one year later, or you need to pay part of the liquidated damages. That's understandable. After all, banks have to make money.

Although there is only one word difference between the equal principal and interest and the average capital, the difference is not only in interest, but also in the pressure of monthly payment. However, interest is a factor that people consider more when buying a house, and many people ignore the prepayment pressure of equal principal repayment. Whether it is average capital or equal principal and interest, only the repayment method that really suits your actual situation is the best.