Early repayment can save interest payments

Early repayment can save interest payments, depends on a few days in advance. Because the bank's interest rate is calculated by 360 days, while there 365 days a year. Therefore, for a 1-year loan, if you repay early, the actual number of days to make loans less 360 days, you can save interest payments; but the actual number of days to make loans to more than 360 days, you've been framed to pay interest to the.
In 2006, Miss Jiang real estate mortgage to the bank with a sum of 500,000 yuan by the 1-year consumer loan, interest rate 7.254% (in the one-year base sacrifice??? .58% Based on the floating of 30%) loans at March 29, 2007 expiration. In order to save interest expense, she was ahead of schedule on March 28 this year, the return of the 50 million loans. After repayment, Miss Jiang to go home for a carefully considered, found the problem, it seems that the banks receive the interest. Even if due for payment, interest has only 36,270 yuan, can take up a day early repayment of bank funds less a day, but also to pay interest? Later, Miss Jiang TEL questioning bank did know prepayment, but also at a disadvantage. The original bank that: 1-year loans, the implementation of "one-time pay off the loan principal and interest" repayment practices: loans due for payment, interest at a "loan principal × interest rate" is calculated; loans early repayment, according to "loans Loan principal × rate × loans on actual number of days "of interest. Banks on interest rates is calculated as: annual interest rate ÷ 360 天. The provisions of the bank, Miss Jiang on March 29 if the loans repay the loan when due, then the banks calculate the interest due for payment by, the formula is as follows: 500 thousand yuan loan principal × interest rate 7.254% × 1 year = 36 270 element. And Miss Jiang March 28 payment, bank loans according to the actual number of days 364 days of computing interest, calculated as follows: 500 thousand yuan loan principal × (annual interest rate of 7.254% ÷ 360) × actual credit days 364 × 1 = 36,582 yuan in . Among them, the Japanese interest rate = annual interest rate of 7.254% ÷ 360 such a calculation, Miss Jiang also pay an early repayment of interest is clearly 312 yuan (36,582 yuan -36,270 dollars), is really a very bad situation. Miss Jiang's disadvantage experience taught us a lesson: for a 1-year loans, prepayment does not necessarily save interest expense. Early repayment can save interest payments, depends on a few days in advance. Because the bank's interest rate is calculated 360 days, while there 365 days a year, this difference between the 5 days; borrowing actual number of days 360 days, is the early repayment and interest payments due repayment of the balance of the same point. So, if you repay in advance, so that the actual number of days fewer loans 360 days, you can save interest payments; the contrary, if the prepayment, the actual number of days to make loans to more than 360 days, you've been framed in more pay interest on the. Therefore, the seemingly simple matter of return of loans, in fact, much hidden knowledge, not be underestimated, nor can not be taken for granted. Understand the repayment of the "true meaning", and you will save money for your bank to make the lowest cost of borrowing.secured loans refinance loans consolidation loans refinancing home equity consolidation consolidation loans secured loan