1. Matching principal and interest refers to a repayment method of a loan, that is, the same amount of loan (including principal and interest) is repaid every month during the repayment period. Equal principal and interest and average capital are not the same concept. Although the monthly repayment amount may be lower than that in average capital at the beginning, the interest paid in the end will be higher than that in average capital, which is also a method often used by banks.

Second, the repayment method

That is to add up the total principal and interest of the mortgage loan, and then distribute it evenly to each month of the repayment period. The monthly repayment amount is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. This method is the most common and recommended by most banks for a long time.

Three. 1. Matching principal and interest repayment method means that the borrower repays the loan principal and interest in equal amount every month, in which the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled every month.

2. The average capital repayment method means that the borrower repays the loan principal with the same amount (loan amount/loan months) every month, calculates the loan interest according to the remaining loan principal at the beginning of the month, and settles it every month, and the sum of the two is the monthly repayment amount.

Four, the matching principal and interest loans are calculated at the compound interest rate. At the settlement time of each repayment, the interest generated by the remaining principal will be calculated together with the remaining principal (loan balance), that is to say, the outstanding interest will also be calculated. In foreign countries, it is recognized as a loan method suitable for the interests of lenders.

5. The amount of monthly repayment remains unchanged, which is essentially that the proportion of principal increases month by month, the proportion of interest decreases month by month, and the number of monthly repayments remains unchanged, that is, in the distribution proportion of "principal and interest" of monthly payment, the proportion of interest paid in the first half is large and the proportion of principal is small. After more than half of the repayment period, it gradually turns into a large proportion of principal and a small proportion of interest.

Six, the average capital loan interest is calculated by the simple interest rate method. At the settlement time of each repayment, only the remaining principal (loan balance) is calculated, that is to say, the outstanding loan interest is not calculated together with the outstanding loan balance, only the principal is calculated.