Mortgage red book loan 800 million how much interest to pay each month?

Conditions for mortgage of red book to borrow 800 million

To get a mortgage loan of 800 million VND, customers need to meet the following requirements:

- Customers are Vietnamese citizens, from 18 - 75 years old

- Borrowers need to have a clear and legal borrowing purpose.

- Customers have good credit history, no overdue debt at credit institutions

- Have legal real estate as collateral (pink book, red book). Depending on the type of property and loan purpose, the bank has specific requirements for collateral.

- Have clear financial capacity and repayment sources to fulfill obligations to the bank

Mortgage red book loan 800 million how much interest to pay each month?

When mortgaging the red book to borrow 800 million, the amount to be paid at the beginning of each period is calculated according to the monthly principal and interest installment method. This means that the interest will be calculated on the gradually decreasing principal balance.

The formula for calculating interest is as follows:

Total monthly payment = Monthly interest payment + Total monthly principal payment.

In there:

Monthly Principal = Initial Loan Amount ÷ Number of Loan Months

First month interest = Initial loan amount x Monthly interest rate

2nd month interest = (Initial loan amount - Principal paid) x Monthly interest rate

Similarly, from the 3rd month onwards, interest will be calculated on the remaining balance.

If you borrow 800 million for 10 years (equivalent to 120 months), the interest rate is 12%/year calculated on the decreasing balance, the amount to be paid will be calculated as follows:

Monthly principal payment = 800,000,000 ÷ 120 = 6,666,666 VND

First month's interest = 800,000,000 x (12% ÷ 12) = 8,000,000 VND

Interest for the second month = (800,000,000 - 6,666,666) x (12% ÷ 12) = 7,933,333 VND

Continuing the above formula will calculate the interest payable in the following months.

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