Not everyone knows about such a concept as annuity payments.What this type of payment, must have heard by many.But what impact it has on the cost of the funds borrowed from the financial institution, not everyone knows.When a person takes a loan, it draws attention to the interest.People think the smaller the rate, the more advantageous offer.So think of those ordinary people who know little about finances.They also pay attention to the amount of the loan and its term.This, of course, the essential characteristics.But there is an important indicator of it is not all heard.
Types of payments for the loan
prepared by the borrower in the course, it is necessary to look at this section as a form of payment.That he has a great impact on the value of the loan.There are several payment options.Differentiated and annuity payments.What it is?Let's face it.
Differentiated payments
first type most famous.This payment, which is set at different monthly payment, which decreases with time.All the debt is divided by the number of months of the loan, the payment must be carried out in equal shares.Interest accrued on the balance, the amount of monthly payments will decrease.
annuity payments
Now let's annuity payments - what is this form of payment, does not understand all the bank customers.Outwardly, they seem to be more simple.What is their essence?The loan should be repaid on a monthly basis for one amount, but calculate it is not so easy.Many are afraid of such a thing as annuity payments.What is this kind of payment, it is easier to understand, to understand the mechanism of calculation.Interest should be recalculated taking into account the balance of borrowed funds, they decrease, but the main share in this monthly rise.First, I pay interest, it turns out that banks charge income upfront.If we compare the data with differentiated payments, then we can say the size of the annuity is less than in the first months.Somewhere in the middle of the period they are about even, and then decrease the value of the first and second amount of change.
How can calculate the annuity payments
Bank uses to calculate the specialized calculator program.Without going into the intricacies of mathematics, one can note such payment when the loan is a more expensive, as the remainder of the debt is reduced slowly.The longer the loan and its value, the greater the overpayment.The method of repayment is not so important when credits for short periods.
Here is the formula for the annuity payment:
Monthly payment = KA * SK, where KA - rate annuity, SK - the sum of the loan.
KA = (pr * (1 + pr) n) / ((1 + pr) n-1), where pr - is the rate of interest (monthly), n - the repayment period of the loan.
For example, if the rate of 12% per year, it is necessary to calculate the pr 12% divided by 12 months.
annuity Cons:
- rise in price of credit;
- you can not count the monthly payment for early repayment;
- sometimes not allowed to extinguish the loan ahead of schedule.
annuity Pros:
annuity payments on the loan are not only disadvantages, they have a number of advantages.
- Do not specify the amount of the payment every month, most importantly, time to extinguish the debt.
- initial payment is less, it allows you to take credit for low-income people.
- Low monthly payments are beneficial for the family budget.Often they are chosen when the mortgage.
- Because of inflation, this type of payment does not seem so expensive.
all carefully calculated and analyzed by taking a loan, then to not be surprises!
