Enter loan amount, interest rate, and term to view detailed monthly/yearly repayment schedules. Compare equal payment and equal principal methods.
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Equal payment (원리금균등상환) means paying the same total amount (principal + interest) each month. Early payments are mostly interest, with more principal paid off over time. Equal principal (원금균등상환) means repaying the same principal each month plus interest on the remaining balance. Total interest is lower, but initial payments are higher.
In terms of total interest cost, equal principal repayment is always better because the principal decreases faster. However, the early payment burden is higher, so if you prefer stable monthly expenses, equal payment is more suitable. Consider your income level, future earnings outlook, and loan term comprehensively.
This is a fee charged when you repay the entire loan before the agreed term. It is typically 0.5–1.5% of the remaining principal, and is often waived after 3 years from loan origination. Since 2024, early repayment fees for mortgage loans have been reduced, and some products are exempt.
A fixed rate remains unchanged throughout the loan term, making repayment planning straightforward. A variable rate changes every 3–6 months based on a benchmark rate (COFIX, CD, etc.). Variable rates may be advantageous when current rates are high (expecting decreases), and fixed rates when rates are low. Mixed rates offer 5 years fixed then switch to variable.
DSR is the ratio of annual principal and interest payments on all loans to annual income. As of 2024, a DSR of 40% applies to loans exceeding 100 million KRW. For example, if annual income is 50 million KRW, total annual loan repayments cannot exceed 20 million KRW (about 1.67 million/month). All loans including mortgages, credit loans, and card loans are included.
Use extra funds for early partial repayments whenever possible (check fees first). Even repaying 1 million KRW extra in the first year can save hundreds of millions in interest over a 30-year loan. Take advantage of bank preferential rates for salary transfers or auto-payments, and consider refinancing to find a lower rate.
This calculator is for reference only. Actual loan repayment terms may vary by financial institution. Please contact your bank for an accurate repayment schedule. Grace periods, early repayment fees, and variable rates are not reflected.
A loan amortization schedule is a table showing the principal, interest, and remaining balance for each monthly payment over the life of the loan. It is an essential planning tool for any loan, whether a mortgage, jeonse loan, or personal loan.
Equal Payment (원리금균등상환): The same amount is paid each month. Interest makes up the majority early on, with the principal share increasing over time. Equal Principal (원금균등상환): The same principal is repaid each month plus interest on the remaining balance. Total interest is lower, but initial payments are higher.
Korean mortgage rates are primarily based on COFIX (Cost of Funds Index), financial bonds, and CD (Certificate of Deposit) rates. Banks apply their own spread and preferential rates on top to determine the final lending rate. As of 2024, average mortgage rates range from 3.5% to 5.0%.
Korea enforces LTV (Loan-to-Value), DTI (Debt-to-Income), and DSR (Debt Service Ratio) regulations to manage household debt. The applicable ratios vary depending on whether the area is designated as speculative, the number of properties owned, and the property value, so it is essential to check before taking out a loan.