Because the borrower chose the repayment method in the average capital. Average capital refers to a loan repayment method in which the total loan amount is divided into equal parts during the repayment period, and the same amount of principal and interest generated by the remaining loans in that month are repaid every month. Because the monthly repayment amount is fixed and the interest is getting less and less, the borrower faces great repayment pressure at first, but with the passage of time, the monthly repayment amount is getting less and less.

Extended data:

The difference between the average capital of mortgage loan and the equal principal and interest.

Average capital and equal principal and interest are common repayment methods of loans, but there are great differences between them. The following are five main differences between average capital and equal principal and interest:

The first point: the monthly payment is different.

1, the monthly repayment amount of the average capital will be reduced, and the principal paid in advance will account for a relatively large proportion.

2. Equal principal and interest will be repaid regularly every month, and the interest of prepayment accounts for a relatively large proportion.

The second point: the interest rate is different.

1. The average capital uses the simple interest rate method to calculate interest, and only the residual principal is calculated.

2. Equal principal and interest are calculated according to compound interest, and unpaid interest is also included, so the repayment interest of equal principal and interest is higher than the repayment interest of average capital.

The third point: the suitable people are different.

1, the average capital is suitable for older people to choose, because the early repayment pressure is high, but the repayment pressure will gradually decrease with age.

2. Equal principal and interest are suitable for young people to choose, because a fixed amount of repayment in each period is conducive to reducing the repayment pressure.

The fourth point: repayment pressure is different.

1, the average capital finally pays less interest, so from the overall repayment pressure, it is lower than the equal principal and interest.

2. Matching principal and interest will repay the same amount every month, but the total interest is higher than the average capital, so the overall repayment pressure is relatively large.

The fifth point: the degree of cost performance is different.

1. The average capital repays more principal and less interest expenses at an early stage, so it is suitable for early repayment.

2. Matching principal and interest means that you can hold more assets for investment in the early stage. As long as the return on investment is the loan interest rate, it is worthwhile.