How to calculate early repayment of equal principal and interest? Detailed explanation of calculation formulas combined with hot topics
Recently, with the adjustment of mortgage interest rates and the increase in financial management needs,"Early repayment of equal principal and interest"It has become a hot topic on the Internet. Many users are concerned about how to calculate the interest savings and monthly payment changes after early repayment. This article will combine the popular financial hot spots in the past 10 days, structurally analyze the calculation method of equal principal and interest early repayment, and provide practical data tables.
1. The relationship between recent hot topics and equal principal and interest
1.Mortgage interest rate dynamics: Banks in many places have lowered the interest rate for first-time home buyers to 3.8%, triggering discussions on early repayment.
2.Financial management income comparison: The yield rate of some financial products is lower than the mortgage interest rate, and users tend to repay their loans early.
3.Policy direction: The central bank encourages residents to reduce debt costs, and the demand for early repayment increases.
2. Calculation formula for early repayment of equal principal and interest
Prepayment of equal principal and interest needs to be calculatedRemaining principal and interest savingsandnew monthly payment, the core formula is as follows:
| calculated item | formula | Description |
|---|---|---|
| remaining principal | Total original loan × (1 - number of repaid periods/total number of periods) | Ignore the impact of interest and estimate the remaining debt |
| interest savings | Remaining principal × monthly interest rate × number of remaining periods | The total interest that can be saved assuming a one-time settlement |
| new monthly payment | [Remaining principal × monthly interest rate × (1+monthly interest rate)^remaining number of periods] / [(1+monthly interest rate)^remaining number of periods -1] | Recalculated monthly payment after partial prepayment |
3. Example calculation (loan of 1 million, interest rate 4.9%, term 30 years)
| Repay 200,000 yuan in advance after 5 years of repayment | numerical value |
|---|---|
| remaining principal | 923,000 yuan |
| Principal amount after early repayment | 723,000 yuan |
| Original remaining interest | About 842,000 yuan |
| New monthly payment (25-year term) | Approximately NT$4,230 (originally NT$5,307) |
4. Three hot controversial points about early repayment
1.Is it a good deal?If the investment rate of return is higher than the mortgage interest rate, it is recommended to retain the funds; otherwise, priority is given to repayment.
2.liquidated damages issue: Some banks charge 1%-3% liquidated damages, and the contract terms need to be confirmed in advance.
3.Repayment method selection: Shortening the term can save more interest, and reducing monthly payments can alleviate short-term pressure.
5. Operation suggestions
1. Use bank APP or online calculator to calculate accurately.
2. Compare financial management income and mortgage interest rate difference, and make rational decisions.
3. Prioritize repayment of high-interest loans (such as credit loans).
Summary: Early repayment of equal principal and interest requires comprehensive judgment on interest rates, personal financial status and financial management capabilities. Through structured calculations, cost savings can be clearly quantified and optimal choices can be made based on recent financial hot spots.
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