Repayment with equal principal and interest requires more interest than repayment with equal principal. At the beginning, interest accounted for the main part of monthly repayment, and with the extension of repayment time, the proportion of principal also increased. However, the monthly repayment amount of this method is fixed, which can control the expenditure of family income in a planned way and facilitate each family to determine the repayment ability according to their own income.
Extended data:
Matching principal and interest repayment method Monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled monthly. Because the monthly repayment amount is equal, in the initial monthly repayment of the loan, after excluding the monthly settlement interest, the loan principal is less;
In the monthly repayment at the end of the loan, after deducting the interest settled on a monthly basis, the principal of the loan is more. This repayment method actually takes up more bank loans and takes longer. At the same time, it is also convenient for borrowers to reasonably arrange their monthly life and financial management (such as renting a house, etc.). ) is undoubtedly the best choice for those who are proficient in investment and are good at "taking Qian Shengqian as their home".
Baidu Encyclopedia-Equal principal and interest repayment method