Help me figure out how much interest I can pay less if I repay my loan early

Do you repay the loan in equal repayments? If so, your instalment is 204. But if I calculate it according to your number of installments and interest, I should repay it every month, but you say that it is a monthly repayment. This is where this error comes from.

According to your original loan plan, the interest you need to pay is $, and the total principal and interest are $1.

Let's say the amount I calculated first. Then, from January 2008 to September 2010, you have repaid 33 installments, and the remaining principal is still in yuan. If you repay 50,000 yuan in advance, that is, the principal is left in yuan.

From October 2010, you need to repay the yuan every month, a total of 171 installments, you need to pay interest yuan, and the accumulated principal and interest will also be repaid.

Personal advice: If you have a low interest on this loan, if you have other investments, it is recommended to use them for other investments without rushing to repay the bank. Prepayment is a loss for us, because the interest is paid the most in the early stage, and you repay it early in the later period, but let the bank earn all the interest.

If you repay $50,000, you can save $10,000 in interest.

Prepayment calculator to know the best way.

[Calculate how much it will cost you to renovate your home].

Nowadays, housing prices are getting higher and higher, generally people need to borrow from the bank to buy a house, with the improvement of people's economy, people will want to pay off the loan in advance, so how to repay the loan more cost-effective, how to calculate the interest on the early repayment? Let's take a look!

1. How to calculate the interest on prepayment.

Usually, the early repayment of the lender needs to be calculated according to the percentage of the amount, taking ICBC as an example, the early repayment regulations are as follows:

1.If the loan is repaid in advance within 1 year, the bank will charge 3% of the amount of the early repayment as liquidated damages.

2.If the loan is repaid in advance within 1-2 years, the bank will charge 2% of the early repayment amount as liquidated damages.

3.If the loan is repaid in advance within 2-3 years, the bank will charge 1% of the early repayment amount as liquidated damages.

2. Will the interest on early repayment be reduced?

Theoretically speaking, early repayment will reduce the interest expense, but it is mainly based on the agreement on early repayment in the contract signed at the time of the loan. There are usually two types of early repayment, which are as follows:

1.Full prepayment.

Full repayment refers to the one-time settlement of the principal and interest of the mortgage, and after all the loans are repaid in advance, the interest will also be due to the day when the bank principal and interest are paid off, that is, the loan needs to pay interest every month, and if the principal and interest are paid off in advance, there will be no need to pay interest after that.

2.Partial prepayment.

If only part of the loan is repaid in advance, and the remaining principal and interest have not yet been settled, the remaining outstanding loan principal and interest interest will be executed according to the loan interest rate agreed in the original loan contract.

Summary: The above is how to calculate the prepayment interest and whether the prepayment interest will be reduced, I hope the above sharing can help you, if you need to know more about it, please continue to pay attention to Qeeka Home**, will answer for you one by one.

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First, the front. After a part of the mortgage is repaid in advance, the subsequent interest will no longer be calculated according to the total amount of the loan, but will be calculated according to the remaining outstanding principal, so that the interest can naturally be reduced.

2. Specific analysis.

Of course, there is still no change in the repayment formula, such as the equal principal and interest repayment method.

Monthly repayment amount (principal + interest) = [loan principal monthly interest rate (1 + monthly interest rate) number of repayment months] [1 + monthly interest rate) number of repayment months 1].

After that, you can choose to reduce the monthly payment and keep the repayment period unchanged, so that the monthly repayment pressure can be reduced. You can also choose to shorten your repayment period and keep your monthly payments the same, so you can pay off your debt sooner.

Of course, if you pay off the mortgage in advance, the interest will be calculated until the day of repayment.

It should be noted that if only a partial repayment is made in advance, the earlier the prepayment is made, the more interest can be reduced.

Especially for mortgages that adopt the equal principal and interest repayment method, the principal accounts for a larger proportion in the later stage of repayment, and the interest is almost repaid, and even if it is repaid in advance, there will not be much interest reduction.

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3. Why is the mortgage repaid with interest?

The mortgage is prepaid with interest, because the user chooses to repay the principal and interest in equal amounts.

The feature of equal principal and interest repayment is that the same amount of loan funds is repaid every month, and the proportion of loan interest in the previous period is higher than that of the loan principal, so in the user's opinion, the main thing to repay in the early stage is the loan interest.

When signing a mortgage contract, the user has no special requirements, and generally defaults to equal principal and interest repayment.

If the user wants to choose equal principal repayment, he or she must submit it to the bank when signing the mortgage contract, and whether the bank will agree to it depends on the actual situation.

The interest on the prepayment of the loan shall be calculated according to the actual period of the loan, unless otherwise agreed by the parties. In addition, the borrower will also bear the increased costs of prepayment of the loan to the lender. The borrower cannot harm the lender by prepaying the loan.

[Legal basis].Article 530 of the Civil Code.

The creditor may refuse the debtor's early performance of the debt, except where the early performance of the debt does not harm the interests of the creditor.

The debtor shall bear the additional costs incurred by the creditor for the debtor's early performance of the debt.

Article 675.

The borrower shall return the loan within the agreed time limit.

Article 677.

If the borrower returns the loan in advance, the interest shall be calculated according to the actual period of the loan, unless otherwise agreed by the parties.

Article 678.

The borrower can apply to the lender for an extension before the expiration of the repayment period; If the lender agrees, it can be extended.

There are two types of early repayment:

1. Full early repayment. Full prepayment refers to the one-time settlement of the principal and interest of the mortgage. After full prepayment, the interest is calculated until the day when the principal and interest of the bank are repaid, in other words, the interest will be calculated for as long as you have borrowed from the bank.

2. Partial early repayment. Partial prepayment is a situation where only a part of the principal and interest of the loan is repaid, and the remaining principal and interest are still outstanding. The principal and interest of the unsettled loan are still implemented according to the loan interest rate agreed in the original loan contract (if there is a discount, it will continue to be discounted).

The interest is settled on a monthly basis according to the agreed interest rate, and the interest on this month's repayment = the total principal owed to the bank * the monthly interest rate. In other words, the interest will be repaid as much as the principal is occupied.

Hello! The early repayment of personal housing mortgage loans of ABC is handled as follows: the borrower shall submit a written application to the lending bank at least 30 days in advance and obtain the consent of the lending bank to apply for early repayment of the housing loan.

The materials to be brought for early repayment of personal housing loans are the borrower's identity document, the personal housing purchase guarantee loan contract, and the original housing loan repayment card (discount), and the application shall be submitted to the original loan agency in advance according to the contract. Please consult your local lender for details. The standard of liquidated damages for early repayment is subject to the loan contract signed between the customer and our bank, please check the provisions of the loan contract or contact the loan handling branch for verification.

Fangchenggang Shihezi Hongjiang City in China, due to the soaring housing prices, ** is very expensive, plus the monthly repayment of buying a house can be divided into two ways: equal principal and equal principal and interest. In the process of repaying the loan, we are confused about how to calculate the interest on the prepayment of the loan with equal principal and interest. The next part is to answer your questions.

1. What are the equal principal and equal principal and interest?

1. The equal principal and equal principal amount is to divide the total amount of the loan into equal parts during the repayment period, and repay the same amount of principal and the interest generated by the remaining loan in the month every month, so that because the monthly repayment principal is fixed, and the interest is less and less, so the repayment pressure is greater at first, but the monthly repayment is also less and less with the passage of time. Calculation of equal principal interest: nth month interest = (loan principal - accumulated amount of repaid principal) monthly interest rate nth month interest = [loan principal - (n-1) loan principal total repayment months] monthly interest rate nth month repayment amount = (loan principal repayment months) nth month interest.

2. Equal principal and interest Equal principal and interest is to repay the same amount of loan (including principal and interest) every month during the repayment period, in layman's terms, equal principal and interest is "the sum of the principal and interest repaid each month is unchanged", but the ratio of principal and interest is changing. Calculation of monthly repayment amount of equal principal and interest: monthly repayment amount = [monthly interest rate (January interest rate) number of repayment periods] [January interest rate] number of repayment periods - 1] Although the monthly repayment amount of the loan principal is equal to that of the same principal and interest, the proportion of interest is heavier and the loan principal repaid is less at the initial stage of loan repayment; In the later stage of the loan, due to the continuous reduction of the loan principal, the loan interest in the monthly repayment amount is also decreasing, and the monthly loan principal repayment is more.

2. How to calculate the interest on prepayment of equal principal and interest, and how to repay the loan in the same amount of interest, it is an option to repay the loan in the same amount. Early repayment of loans with equal principal and interest: If the loan period exceeds one-third of the loan term, the repayment will not save interest; If the deadline for one-third is reached, one month's interest shall be paid as liquidated damages, and the remaining outstanding interest shall not be paid.

When early repayment has been chosen, the subsequent interest calculation is based on the balance and balance after early repayment, and the original repayment interest rate, method, and cycle remain unchanged, and only the size of the equal amount changes. Equal repayment is characterized by equal monthly payments, but the composition is unequal, that is, the amount of principal and interest each month is not equal. Monthly interest is equal to the amount minus the principal.

1. Mortgage repayment in advance, the loan settles the bank principal and interest at one time, and the interest calculation is subject to the date when you repay the bank principal and interest, and no interest is required to be paid on the date after settlement.

2. The calculation formula of equal principal and interest repayment method: monthly equal principal and interest repayment = loan principal monthly interest rate + loan principal monthly interest rate (1 + monthly interest rate) repayment period -

3. It can be calculated with the prepayment calculator. You only need to enter some key information, such as the original loan amount, the original loan term, etc., to calculate the monthly payment and interest savings after the early repayment.

For borrowers, it is cost-effective to repay the loan before the loan period is one-third of the time. For those who have reached the middle of repayment or have repaid the same principal for 1 or 3 installments, the interest has basically been paid almost, and the part of early repayment is more of the principal, and the impact of interest rate fluctuations on the repayment amount will not be too great, and it is not meaningful to choose early repayment.

Most banks require at least one year of repayment before you can apply for early repayment, but some banks say that you can apply for early repayment at any time. In state-owned banks, Bank of China and CCB need to repay the loan for one year before they can apply for early repayment, and ICBC needs half a year to repay the loan in advance. In addition, banks such as China Merchants Bank, Bank of Communications, and East Asia all need to apply for early repayment after one year, while Huaxia Bank said that it can apply for loan repayment at any time.

Generally, the mortgage amount is large, and if there is no special reason, few customers will repay the loan in advance within a year.

Hello, the early repayment of personal housing mortgage loan of ABC is handled as follows: according to the loan contract, the borrower must submit a written application to the lending bank at least 30 days in advance and obtain the consent of the lending bank. Due to the complexity of the mortgage business and the actual situation of each place, there are some special treatments, please communicate with your loan bank's early repayment specialist for the specific early repayment time arrangement.

The standard of liquidated damages for early repayment shall be subject to the loan contract signed between the customer and our bank, please check the provisions of the loan contract or contact the loan handling network for verification. For early repayment of personal housing loans, the materials to be brought are the borrower's identity document, personal housing purchase guarantee loan contract, and the original housing loan repayment card (discount), and the application should be submitted to the original loan agency in advance as agreed in the contract. However, consult your local lender for specific advice.

At the time of the answer, Liquid Zhi Zhengjian: 2023-04-24, in case of business changes, please refer to the actual situation. ）

Prepayment refers to the borrower's repayment of the loan before the repayment period expires. In some cases, this type of repayment is beneficial to the borrower and disadvantageous to the lender, so whether early repayment is allowed and the conditions under which early repayment should be clearly defined. Early repayment includes full repayment in advance, partial repayment in advance with the same loan term, and partial repayment in advance while shortening the loan term.

Conditions for early repayment: The lending bank can only accept the borrower's application for early repayment one year after the issuance of the personal loan.

How is prepayment interest calculated?

For example, a person borrows 320,000 yuan from the bank to buy a commercial house, pays off the loan in 30 years, and repays 1,650 yuan per month. Then, the loan of 320,000 yuan (principal) The bank's monthly expected annualized interest rate is 360 months = more than 10,000 yuan. Some people will ask, doesn't this mean that the money repaid to the bank after 30 years is more than 200,000 yuan more than the principal of the bank loan?

Yes, in the actual repayment process, most of the 1,650 yuan repaid to the bank every month is interest. As a result, most of the money repaid for early repayment is principal. For example:

After 20 years, you want to pay off the remaining loan in one go, with at least 60% of the principal amount repaid.

In this way, another problem arises: I only used the principal of the bank for 20 years, but I repaid the interest for 30 years. In this regard, professionals pointed out that such a repayment algorithm is wrong.

The correct algorithm is as follows: taking a loan of 300,000 yuan and a term of 30 years as an example, the expected annualized interest rate of the loan is the monthly expected annualized interest rate, and the monthly repayment amount can be known from the calculation formula of equal monthly repayment. In this case, the principal and interest are:

The interest payable in the first month after the loan is 1,395 yuan (300,000 = 1,395 yuan), the principal repaid is yuan (yuan), and the remaining loan principal after repayment is yuan. The interest payable in the second month after the loan is = RMB, the principal repaid is RMB, and the remaining loan principal is RMB. The repayment method for subsequent months is based on this formula.