Mortgages: the calculation of payment

With mortgage payments calculation may have the annuity or differentiated scheme. Annuity — a monthly payment equal throughout the period of credit. Differentiated payments involve reducing the monthly amount that is given in repayment mortgage.

Annuity payment

Annuity payments in Russia were most prevalent. They are convenient for budget planning borrower, as all time constitute the same amount. And in the first stage repayment mortgage, annuity sum payments lower than the sum of differentiated. But ultimately, the borrower, chosen scheme annuity calculate payments, the creditor to pay a large sum than the borrower, calculated by the differentiated scheme.

Formula for calculating the annuity payments is complicated enough. Therefore, to determine the amount of annuity to better take advantage of the specific conditions of the mortgage calculator.

Differentiated payments

Differentiated payments borne fairly heavy burden on the borrower in the early years of payments on mortgage loans. But since about mid-term credit when payments on mortgage significantly reduced, there is free money and the opportunity to take a new loan.

For borrower agrees to pay in monthly loan repayment of approximately EUR 12000. Below presented two options for calculating payments on mortgage — annuity payments and differentiated payments . For the sake of brevity term mortgage payments equal to one year passed. During this period, the borrower may pay a sum of about EUR 144000., Of which mortgage interest is the order of 8300 rubles. And the loan amount is approximately EUR 135700. The rate on mortgages accepted in the amount of 11% per annum.

From the tables show that in the case differentiated payments , in the first 6 months of payments on the loan the borrower exceed a designated threshold of EUR 12000. But then they start to decline rapidly. In the case annuity payments borrower will be 12 months to pay the same amount — 11993.39 rub. In the end, the end of the year mortgage and in both case will be repaid (at the end of the loan amount is equal to zero). But in the first version of a grand total payments will amount 143785.46 rub. And the second option — 143920.68 rub. The difference of 135.22 rubles. seems insignificant. But if you take the real size and real mortgage lending in the mortgage term, this difference may result in a borrower hundreds of thousands of rubles. To verify this, you can use the mortgage calculator, which calculates as differentiated and annuity payments.

Calculation of differentiated payments

Months	The loan amount at the beginning.	Percent	Payment loan	Total payment	The loan amount at the end
1	135 700.00	1 243.92	11 308.33	12 552.25	124 391.67
2	124 391.67	1 140.26	11 308.33	12 448.59	113 083.34
3	113 083.34	1 036.60	11 308.33	12 344.93	101 775.01
4	101 775.01	932.94	11 308.33	12 241.27	90 466.68
5	90 466.68	829.28	11 308.33	12 137.61	79 158.35
6	79 158.35	725.62	11 308.33	12 033.95	67 850.02
7	67 850.02	621.96	11 308.33	11 930.29	56 541.69
8	56 541.69	518.30	11 308.33	11 826.63	45 233.36
9	45 233.36	414.64	11 308.33	11 722.97	33 925.03
10	33 925.03	310.98	11 308.33	11 619.31	22 616.70
11	22 616.70	207.32	11 308.33	11 515.65	11 308.33
12	11 308.33	103.66	11 308.33	11 411.99	0.00
TOTAL		8 085.46		143 785.46

Calculation annuity payments

Months	The loan amount at the beginning.	Percent	Credit percentage +	Annuity	The loan amount at the end
1	135 700.00	1 243.92	136 943.92	11 993.39	124 950.53
2	124 950.53	1 145.38	126 095.91	11 993.39	114 102.52
3	114 102.52	1 045.94	115 148.46	11 993.39	103 155.07
4	103 155.07	945.59	104 100.65	11 993.39	92 107.26
5	92 107.26	844.32	92 951.58	11 993.39	80 958.19
6	80 958.19	742.12	81 700.31	11 993.39	69 706.92
7	69 706.92	638.98	70 345.90	11 993.39	58 352.51
8	58 352.51	534.90	58 887.41	11 993.39	46 894.02
9	46 894.02	429.86	47 323.88	11 993.39	35 330.49
10	35 330.49	323.86	35 654.35	11 993.39	23 660.96
11	23 660.96	216.89	23 877.85	11 993.39	11 884.45
12	11 884.45	108.94	11 993.39	11 993.39	0.00
TOTAL		8 220.69		143 920.68