Because the monthly repayment interest is calculated according to the loan principal, the repayment method in the average capital requires the customer's repayment ability at first, and the initial repayment pressure will be greater, but the monthly payment will decrease month by month, and the repayment pressure will be relatively smaller and smaller. At the same time, under the condition of constant interest rate, the interest paid by equal repayment method will be higher than that paid by average capital repayment method.
Extended data:
Matters needing attention in handling mortgage loans:
1. Apply for a mortgage according to your ability: Some people think that the larger the loan amount, the better, because you have to pay back the mortgage and interest after you get it. If the loan term is longer and the loan amount is larger, you have to pay more loan interest and increase the repayment pressure.
2. Choose an appropriate repayment method: At present, there are two common repayment methods for mortgage loans, namely equal principal and interest repayment and equal principal repayment. The latter is more economical than the former, but the pressure of early repayment is greater, and borrowers can choose reasonably according to their income.
3. Prepare loan information in advance: copy of ID card, copy of household registration book, copy of marriage certificate or single certificate, copy of education certificate, income certificate and bank account, copy of house purchase contract and down payment invoice, social security related certificates, etc. It is also very important that there is no bad credit record in bank loans or credit card repayments. If yes, you must apply for cancellation or issue relevant certificates.
4. Repay in full and on time: After obtaining the loan, the borrower must repay in full and on time according to the provisions in the loan contract, so as not to leave a bad credit record and cause unnecessary trouble.
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