First of all, in a sense, the average capital method (diminishing method) is not necessarily better than the matching principal and interest method (matching method), and what kind of repayment method to choose will vary from person to person. Applicable people: families with stable income, buying a house for self-occupation and economic conditions that do not allow excessive investment in the early stage. You can choose this way, such as civil servants, teachers and other groups with relatively stable income and job opportunities. 1, "equal principal and interest repayment method" means that the borrower always repays the loan principal and interest with the same amount every month. At the beginning of repayment, the interest expense is the largest and the principal is still less. In the future, with the gradual reduction of monthly interest expenses, the repayment of principal will gradually increase; 2. "Average capital repayment method" (diminishing method) means that the borrower repays the same amount of loan principal every month, and the interest decreases with the principal month by month, and the monthly repayment amount also decreases month by month. In short, you will get interest every day you deposit money in the bank. The more money you save, the more interest you will get. Similarly, the same is true for loans. If the bank loan exceeds one day, it will pay interest for one more day. The larger the loan amount, the more interest will be paid to the bank.

The calculation formula of bank interest is: interest = amount of funds × interest rate × occupied time.

Therefore, the amount of interest, under the condition of constant interest rate, can only be determined by the time and amount of funds actually occupied, rather than which repayment method is adopted. This is the unchangeable truth. In fact, no matter what repayment method the lender adopts, it is only a matter of pressure. There is little difference between the overall repayment principal and total interest. If the price difference is large, the bank will not lose money. Hehe, I hope it is useful to you!