The boom in consumer and mortgage lendingforcing borrowers to learn the ABCs of financial calculations. It's clear that the issuance of bank loans - both businesses and individuals, not charity.
Therefore, it is important to reduce the burden to borrowers, reducing the amount of interest payments.
But most often used annuitentny method of payment is more profitable for banks.
There are two repayment schemes loan - thisdifferentiated and annuitentnye monthly payments. They differ in payout. When differentiated repayment every month you are paying different amounts, at the beginning of these amounts is greater at the end of maturity, they become smaller. Annuitentnye payments always paid the same amount.
Calculation of differential payment is simple - the totalthe loan amount divided by the number of months - loan term, and these payments to repay the loan amount added to the monthly interest on the remainder. The longer you pay the loan, the less the rest of your debt, the less and accrued interest on it.
The formula used to calculate the monthlyannuitentny payment difficult. In this scheme, the interest is also charged on the balance of the debt, but not the principal debt is paid in equal installments. It turns out that at the beginning of the term loan amount of monthly payment amount to much of the interest in smaller - the payment of principal. The ratio between the monthly changes in the direction of increasing the amount of principal, but the total monthly amount paid out remains unchanged.
Pros and cons annuitentnyh payments
Under this scheme, it turns out that the borrowerBank pays interest in advance, ie, First Bank withdraws its revenue from the amount of monthly payments, then this amount is already sent to the repayment of principal. Annuitentnaya repayment of the loan scheme is more profitable to the bank than differentiated. For you, this method is particularly disadvantageous if you want to prepay the loan, in this case, the actual percentage will get much more than what is specified in your loan agreement. In addition, some banks may fail in terms of a monthly amount paid in the event of partial early repayment.
The advantages annuitentnoy repayment loan scheme forthe borrower can be attributed convenience of calculation - you know exactly how much money you have spent on a monthly basis and it is much easier to control your payment process. Since the first payment with a differentiated repayment of the loan can be a fairly significant amount, not all borrowers will be able to select them from your monthly income. But inflationary pressures are also objective reality, so annuitentnye payments are more favorable for long-term loans, if you, for example, take the money in a mortgage for a period of 10 years or more.