If you have abundant funds, and the income that these funds can create cannot be higher than the bank interest rate, then it is more cost-effective to choose average capital. In the average capital, the monthly principal is the same, but the interest is different, and the interest is getting less and less with the passage of time, so the overall monthly payment of principal plus interest in the previous period will be higher. You can choose average capital if you have sufficient funds. But there is also a premise, if you make other investments and the yield is higher than the bank interest rate, then you can choose the second one, because money can create greater value for you.

If the upfront capital is insufficient, it is a good choice to match the principal and interest, because the monthly matching principal and interest is different, but the repayment amount is the same every month, so the upfront principal is less and the interest is more, but the total amount of each month is the same, and the repayment amount is less than the average capital.

I hope my answer can help you.