The monthly mortgage payment is calculated as follows:

1. For example, for an 8 million home loan, the 30% down payment is 2.4 million, the loan term is 30 years, the interest is 4.66, and the monthly payment is 28,000. Thousand 900, the total interest is 4.81 million.

2. 70 of 8 million = 5.6 million (this is the money you need to borrow from the bank); the monthly payment is equal to the monthly repayment amount, 12 months a year, and the loan lasts for 30 years. That is, 12*30=360 times (one payment has to be repaid 360 times, and late repayment is equal to 360 months of repayment).

3. Please note: Now let n=360; 4.66 refers to the annual loan interest rate, which is converted into a monthly loan interest rate of 4.66/12=0.39 (for the convenience of memory, but the actual value is substituted into the calculation We still use 4.66/12 to reduce the error), and now set r=0.39. Since the monthly payment of equal principal and interest is a fixed amount that will not change, we set it to Things:

4. PV=5,600,000 (loan), n=360 (360 months); r=0.39 (monthly loan interest rate), x=? (Fuzhi Monthly Payment)

5. Since interest rates exist, let’s imagine what interest rates are and why there are interest rates. Have you ever heard of such a saying? "Money has a time value." This means that currencies have different values ??at different points in time. For students who still don’t understand this, you can read my other article, which mentions relevant information, and pay attention to the explanation of “currency depreciation”.

6. Back to the calculation, the monthly payment is 28,900, which in mathematical notation is x=28909.23 (I will tell you how to calculate it later)

7. Students who have taken out a loan know that one month after the loan is approved, you need to repay the monthly payment. In financial terms, one month after receiving the loan, we need to raise 28,909.23 yuan to repay the funder, Dad’s bank. Suppose you don’t have enough money on hand and only have 28797.17 yuan, which is still 28909.23-28797.17=112.06 yuan short. What should you do? The bank happens to have a financial product with an annualized rate of return of 4.66. If you deposit the 28,797.17 yuan, you can get it after one month: 28797.17* (1 4.66/12) = 28909.23, which is enough to pay back the loss. Monthly payment is made. "This is why I set the annual interest rate to 4.66." In fact, what I want to explain is that since the monthly interest rate of financial products is 0.39, as long as you deposit the money, 28,797.17 yuan will be equivalent to 28,909.23 yuan one month later.

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