Matching principal and interest refers to a repayment method of housing loans, that is, repaying the same amount of loans (including principal and interest) every month during the repayment period, which is different from the average capital. Average capital refers to a 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 the current month are repaid every month.

2. Suitable for different people.

The average capital method is more suitable for lenders with strong repayment ability some time ago, because the repayment amount in the early stage is relatively large, and then decreases month by month.

The monthly repayment amount of equal principal and interest is the same, so it is more suitable for families with normal consumption plans, especially young people. Moreover, with the promotion of age or position, income will increase and living standards will naturally rise; If this kind of person chooses the principal method, the early pressure will be very great.

3. Different interest rates

The biggest difference between equal principal and interest and average capital is the difference of interest. Comparatively speaking, the matching of principal and interest will eventually generate more interest than the average capital, and the longer the loan consolidation time, the more interest it will generate. The repayment amount of equal principal and interest is the same every month, while the repayment amount in the average capital is relatively large in the first month, and then decreases month by month. The less you pay, the less the total interest is.

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