1. Calculation formula for equal amounts of principal and interest: monthly repayment amount = loan principal × [monthly interest rate × (1 month interest rate) ^ number of repayment months] ÷ { [ (1 month interest rate) ^ repayment Number of months]-1}.
2. Calculation formula for equal amounts of principal: monthly repayment = monthly principal monthly principal and interest; monthly principal = principal/month of repayment. Monthly principal and interest = (principal - total accumulated repayment) X monthly interest rate.
What is the ratio of monthly mortgage payment to income to be approved?
When a customer applies for a mortgage, the bank statement provided generally cannot be less than twice the monthly payment, otherwise it will be difficult to pass bank approval. For example, if a customer plans to apply for a 600,000 mortgage loan with a term of 20 years and an equal principal repayment method, then the monthly principal payable is 2,500, and the monthly income flow provided by the customer during the application is at least It cannot be less than five thousand yuan.
Of course, in addition to income, mortgage approval will also review the customer's borrowing status, liabilities, credit status, etc. Only when it is confirmed that the customer has good credit and has the ability to repay the principal and interest of the loan on time will the application be approved. Approval.
If the customer has bad credit or has borrowed too much recently and has too high debt, even if the income flow provided is sufficient, it will have a certain impact on the approval of the mortgage, and the approval may not be successful, especially with credit The problem is that most banks will refuse to approve the loan.
If the customer's bank balance is insufficient, it can be supplemented by social security/provident fund payment certificates, tax payment certificates, etc. If there are certain assets under the name, relevant financial certificates can also be provided to complete it.
What to do if you can’t make the monthly mortgage payment
1. Apply to the bank for a loan extension
When you find that you can’t pay the mortgage, don’t panic. Hurry up and apply to the bank for deferment of loan repayments. Generally speaking, after approval by the lending bank, you can get temporary relief, which can also temporarily avoid the risk of overdue mortgage loans.
2. Transfer or sell the house
If applying for a loan extension to the bank still cannot solve your financial problem, then you have no choice but to transfer or sell the house. You can transfer and sell the house to obtain loan repayment funds, thereby extricating yourself from the mortgage quagmire, and the new owner of the property will continue to perform the loan repayment business of the house.
3. The house is auctioned by the bank
Auctioning the house is a bad idea. Generally, when the borrower fails to repay the mortgage for more than six months in a row and the bank fails to recover, the bank will File a court application and your house will be repossessed by the bank and put up for sale at a low price. Therefore, this method is the least cost-effective. For this reason, your financial losses will be heavy, and your credit report will be seriously affected.