6 kinds of payment methods to help you fine mortgage accounts

Faced with increasingly complex mortgage repayment, choose what works best to save, what works best for their own needs, this will need to be currently on the market of 7 kinds of basic mortgage repayment methods to do a comparison

The end of September, Shanghai mortgage market seems to be rich overnight. China Construction Bank and Bank of communications to promote \"equal increment\" and \"equal decrements\" two kinds of new ways of repaying; Pudong Development Bank advocacy \"quarter\" mortgage repayment method; China Merchants Bank was trumped at least 7 flag of mortgage repayment.

Matching the principal and interest repayment

This is by far the most common, most long term bank recommended way. Adds the total principal amount and interest on mortgage loans, and apportion to each month of the repayment period. As repayment, and returned to the Bank each month a fixed amount, but the principal share of monthly increments in the monthly payment, interest share of monthly decline.

For example, suppose you want to bank loan of $ 200,000, repayment period is 15 years, according to the current rate of most banks, select matching principal and interest loans each month about 1707. The initial two or three years, 1707 Yuan about more is the interest portion of the return of the Bank.

Using this method of repayment, also the same amount per month, as a lender, the operation is relatively simple. Bear the same monthly payments also facilitate arrangements of payments. Especially stable income families, bought houses for self-occupation, economic conditions do not allow too much upfront investment, you can choose this way. Civil servants, teachers and other professional groups belonging to the income and job opportunities are relatively stable, very suitable for this method of payment.

However, it also has shortcomings, because of the interest does not decrease with the principal amount of the return, Bank funds longer repayment general interest than the following to describe equal principal repayment of high.

Equal principal repayment

The so-called equal principal repayment, also known as Li benqing, ranging repayment method. Principal of the lenders will be assessed to each month, while one trading day to pay interest on the repayment date. This form relatively equal terms of principal and interest repayments, lower total interest payments, but upfront payment of principal and interest, and decreasing monthly repayment burden.

For example, is also from a bank loan of $ 200,000, repayment period 15, select equal principal repayment, need to repay the Bank principal 1111 Yuan a month or so, first month interest for $ 918, total first month to pay banks $ 2,200, following which the monthly repayments of principal unchanged, reduced interest gradually with the principal is returned.

Use equal principal repayment burden heavier than matching the principal and interest every month at the start. Especially in the case of larger than the total loan, a difference may of thousand Yuan. However, over time, gradually reducing the burden of repayment. This is suitable for high current income, but are expected to crowd of income will be reduced in the future. In fact, more than many middle aged crowd, after a break of time cause hard, has a certain economic base, taking into account the age grew revenue may with the retirement of other factors, to reduce, you can select this way for repayment.

A debt-servicing

After the Bank on this form of repayment requirements are, loan term in years (one year) of the following, carrying out due a repayment, Lee with the Qing dynasty. However, as the repayment mode, is expected to extend the maximum 5-year period of one year. The Bank for approval strictly, generally only open to small short-term loans.

This method of repayment, the operation is simple, but the crowd surface suited to the narrow, is important to note, easily in this way the person lacks payments forced outside, causing credit damage. This loan, the lenders it is best to have a good self-capacity.

Regular servicing debt

Through consultations and bank lenders, can decide to return principal and interest to develop different repayment of the loan unit of time. Shall decide by month, quarter, or year time intervals, such as repayment. In fact, is the lenders in accordance with the financial situation of the different, also money each month to put together into a few months. China Merchants Bank launched the \"quarter\" businesses fall into this scope.

In a sense, it is equal variation of the principal and interest repayments. For example, a 15-year, $ 200,000 loan, matching the principal and interest repayment, the monthly payment to 1707. If lenders choose a more flexible manner, you can choose every two months or $ 3,414.

This approach applies to income not stable population, income and directly linked to the work of many young men have this tendency. Each month a different status determines the income of that month, assessed several months into a month of pressure, you can reduce this part of the Group delay repayment appear satisfactory situation.

Principal return plans

Lender after consultation with the Bank, principal repayments at a time not less than $ 10,000, two intervals not exceeding 12 months for repayment, interest on a monthly or quarterly return.

This is a variant of equal principal repayment. For example, $ 200,000 loan, 15-year period, using equal principal repayment, first principal of the month for about $ 1111, interest for $ 918. Lenders can to separate the interest and principal and interest repayment by month and by quarter, decline in the number. In accordance with the provisions, principal of the loans at least once to have 10 months, for $ 11,110, exceeded $ 10,000 limit. Next debt payments cannot exceed one year time limit.

Such repayment Bank designed for non-monthly income populations to develop, especially taking into account the end of a large crowd of bonuses. Currently popular at home and a family, many have no fixed monthly income, but every time you complete a work is a relatively large amounts of revenue. For example, network writers, artists, designers, and software designers emerging occupations.

Equal increment and matching decrement

These two kinds of payment methods, there is no essential difference. Now a few

Banks lead way, another variant of the way it is matching the principal and interest repayments. It refined segmentation repayment period had, in each of the segmentation unit, equivalent to matching the principal and interest repayment way. The difference is that each time dividing in constant increase of repayment amount may be diminishing or equivalent.

Based on the loan of 100,000, 10-year period, for example, if the most common way of matching the principal and interest repayment, lenders without prepayment, then during the 10-year repayment amount per month is $ 1085.76. Constant incremental repayments if you select, assume time is divided into 10-year divide 5 stages of, then the first two years might each month as long as more than 700 million, the second two-year monthly increase amounts to more than 900 million, the third two-year monthly payment increases to more than 1100 Yuan, and so on. Matching descending on the contrary, the first two years needs more than 1300 Yuan per month, then decrements $ 200 every two years, until the last two years to more than 700 million each month.

Weak in equal increments for the current repayment capacity, however, has anticipated the next incremental population. Many young people need to buy a House, and work performed well, despite the burden of income home loans more difficult, but taking into account the substantial increase in revenues after the future promotions, equal increments can be used for repayment. Instead, if the expected revenue will be reduced, or the current economy is comfortable, you can choose equal decline.