How to calculate the monthly payment of mortgage loan in advance? Analysis of hot topics on the Internet in the past 10 days
Recently, "paying off your mortgage early" has become a hot topic on social platforms and financial media. As the economic environment changes and interest rates adjust, more and more home buyers hope to reduce their interest burden through early repayment. This article will combine the hot data from the entire Internet in the past 10 days to conduct a structured analysis of the calculation methods, precautions and latest trends of early repayment of mortgage loans.
1. The popularity of topics related to “pay off mortgage early” across the Internet in the past 10 days
| platform | hot topics | Number of discussions (times) |
|---|---|---|
| #Would you save money or lose money by paying off your loan early# | 128,000 | |
| Douyin | "Loan Prepayment Calculator" Related Videos | Viewed more than 50 million times |
| Zhihu | “How will the monthly payment change after partial repayment in advance?” | Number of answers: 3200+ |
2. Calculation method of monthly payment for early repayment of mortgage loan
Early repayment is divided intoRepay in fullandPartial repaymentFor both methods, the monthly payment changes mainly depend on the repayment amount, remaining term and bank policies. The following is common calculation logic:
| Repayment type | Monthly payment changes | Calculation formula |
|---|---|---|
| Repay in full | Monthly payment cleared | Remaining principal + liquidated damages (if any) |
| Partial repayment (shortened term) | Monthly payment remains unchanged, total interest decreases | Remaining principal × monthly interest rate × (1+monthly interest rate)^remaining number of periods ÷ [(1+monthly interest rate)^remaining number of periods -1] |
| Partial repayment (reduce monthly payment) | Monthly payment reduced, term unchanged | New principal × original monthly interest rate × (1+original monthly interest rate)^original number of remaining periods ÷ [(1+original monthly interest rate)^original number of remaining periods -1] |
3. The latest trend in early loan repayment in 2023
According to feedback from netizens and bank policies, you should pay attention to the following developments when repaying your loan early:
1.Bank approval time extended: Some banks need to wait in line for 1-3 months;
2.liquidated damages difference: State-owned banks usually have no liquidated damages, while joint-stock banks may charge 1%-3%;
3.interest rate inversion: The interest rate on existing mortgages (5%-6%) is higher than the current interest rate on new loans (around 4%), driving the rush to repay loans early.
4. Case analysis: If you repay 500,000 yuan in advance, how much can you save on the monthly payment?
| Original loan situation | After early repayment (shortened period) | After early repayment (reduced monthly payment) |
|---|---|---|
| The remaining principal is 1 million, the interest rate is 5.88%, and the term is 20 years | The monthly payment is 7,103 yuan → the term is shortened to 10 years, and the total interest saving is about 280,000 yuan | Monthly payment is 7,103 yuan → reduced to about 4,500 yuan, saving about 150,000 yuan in interest |
5. Expert advice
1. PreferenceShorten deadlineRather than reducing monthly payments, the interest savings are more significant;
2. ComparisonFinancial management rate of returnWith mortgage interest rates, if the investment return is lower than the interest rate, it is recommended to repay early;
3. Pay attention to the "early repayment trial calculation" function of the bank APP to calculate the optimal plan in real time.
To sum up, early repayment of a loan requires a comprehensive calculation of costs and benefits, combined with personal financial planning. It is recommended to obtain the latest policies through the bank’s official channels to avoid decision-making errors due to information errors.
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