Annuity payment - a monthly loan payment, which includes the amount of accrued interest for the loan and part of the principal debt. Annuity payments are applied in almost all types of loans issued to individuals, since this type of calculation is convenient for the customer and profitable for the creditor organization. If the annuity payments the bank receives a slightly higher interest income, and for the client, this kind of calculation is more convenient and clear: every month the borrower pays the same amount of repayment of the loan and may, on this basis, calculate its budget until the end of payments. If Annuity payment is fixed in the contract a certain amount of payment on the loan, rather than a percentage of the return to duty. The size of annuity payment - is a certain average amount that does not change depending on the period of repayment (the beginning or end of term). The structure of such payment at the beginning of the repayment period is mainly the interest on the loan and only a small part - the body of the loan (the amount that the client actually received). After some time, this proportion is leveled, and by the end of the repayment period is paid almost exclusively the principal debt. Differentiated payments consist of a split in the entire period of repayment of the loan principal and variable (decreasing) part of the interest on it, which is taken from the balance. That is, when differentiated itself loan payments are paid in equal installments over the life of repayment. Thus, the total amount of payment each month is reduced, and principal repayment evenly distributed throughout the term of the loan. Differentiated payments impose a very heavy burden on the borrower in the early years of payments on a mortgage. But about the middle period of loan payments on the mortgage considerably reduced.

Difference is

The main advantage of annuity form is the same amount of monthly payments over the life of repayment. While in differentiated payments to pay large sums of client at the initial stage of maturity. "Annuity payment is preferred for the main part of the book, - deputy director of" service mortgage Vladimir Gleaner. - With this payment the client can allocate their forces for the entire crediting period. Therefore, although the differential payment economically advantageous to some, I still recommend borrower to choose a form of calculation with the bank, as an annuity. " Those who bought housing mortgages, as a rule, do not have sufficient means to easily overpower the first largest payments; their annuity form of debt repayment is more convenient. According to the Deputy Governor of St. Petersburg branch of ZAO "NOMOS-BANK" Paul Izyumova, with differential payments to the maximum load to service the loan rests with the borrower is in the initial period, when he has a lot of additional costs associated with search and registration of apartments, relocation. "When calculating the annuity form of the bank as it gives the borrower" privilege "to pay the loan," - says Pavel raisins. The most important thing to understand: under the same conditions of the loan (term, amount, interest rate) the total amount of annuity payments will be higher than the total payments for differentiated payments. When Annuity payment reduces the principal debt is uneven: in the first period of repayment of most of the payment is interest, and the body of credit is not reduced. Therefore, total payments, compared with differentiated payments is greater. When choosing differentiated payments total family income should be about a quarter more than the annuity.

The early calculation

Perhaps the main difference between the annuity payments on a mortgage from differentiated feels client who has decided to prepay its debt to the bank. For example, the borrower is making payments faithfully for a year or several years. The financial situation has improved it, and he decided to pay his debt at once. At this point, he finds that paying mostly interest only for future years, but the actual body of the loan is almost not decreased. If the annuity payments at the beginning of the body of a loan decreases slowly, and the total amount of interest accrued more. For the borrower's disadvantage is that if he decides to repay the loan ahead of schedule, interest paid in advance will be lost. When differentiated payments have early repayment without significant financial loss, even in the first months after receiving the loan. Also provides partial repayment of the loan (payment of any amount in respect of principal). In this case, the size of the next payment will be determined based on the amount of debt to date. However, according to Paul Izyumova when it comes to early repayment of the difference in the amounts of the various types of payment are not as great as it seems at first glance: it is about 5-10% depending on the duration and amount of the loan. Possibility of early redemption, he says, as a rule, specify the bank. In both cases - and the annuity, and differentiated payments - Early payment prescribed in the contract with the consent of the client. Early calculations on a loan with the annuity payments can be nearly as profitable as in the differential if the recalculation of interest payments was provided in advance. "Mortgage borrowers - is, as a rule, people with a stable regular income, who have the opportunity for career growth, - says Pavel raisins. - When a contract, they will discuss with the credit institution the possibility of early repayment and choose the optimum conditions for himself." Most of the partial early repayment of a loan customer chooses from the proposed Bank of options: either decrease the amount of monthly payments, or decreases the repayment of the loan. Some advantage differentiated forms is also reflected in the payment of insurance fees on the loan. In this form of payment, the borrower's debt is reduced faster, thereby minimizing the cost of insurance. Credit to the maximum of Banks, which focused on the issuance of long-term loans (up to 25 years), usually offer borrowers a form of payment as an annuity. Differentiated payments using a limited number of banks, working with a mortgage, but the choice is here (for example, a form of settlement offer, Sberbank and Gazprombank). This situation is due to the fact that credit institutions more profitable to use the annuity scheme. This is the director of the Center of the housing loan corporation Adveks. Property Irina Zabrodina: "Of course, the bank is profitable annuity payment, but this form would not have such an extension, if it were not profitable and the client. The advantage is lies in the fact that Bank clearly defines the amount of principal debt, which is to be repaid. Thus, the client always knows exactly the size of the next payment. According to Paul Izyumova, the choice of annuity is dictated not only care for the benefit of the bank, but loyalty to the client. The contract spelled out in annuity form of payment allows borrowers to include in the terms of the family with not very high income. In this calculation the bank can maximize the amount and term of the loan without substantial restrictions on the borrower's income. Whereas in the case of differentiated calculation of the initial payment on the loan may exceed the limit between the client's income and the cost of servicing the loan. Thus, the choice of differentiated payments confirmed by the borrower's income or co-borrower should be about a quarter more than the annuity. For example, to obtain a loan of 1 million 200 thousand rubles. with annuity income of the borrower (the family) should be the order of 40 thousand rubles. per month, while for differentiated payments - not less than 55 thousand rubles. Proposed form of payment of the loan should be an important consideration in selecting a mortgage program. Differential payment is acceptable for those who want to spend a minimum and has a sufficiently high income. Borrowers who want to get the maximum amount of credit for not very high earnings, more convenient and profitable to use the annuity payment.

In any case, the person who chooses to take a mortgage loan should be weighed to assess their financial capabilities in the long term and to choose such credit conditions that will allow his family to effectively address the housing issue.