When you borrow a principal of 100,000 yuan from a bank with a term of 10 years and a base annual interest rate of 5.65%, the following are the impacts of the two main repayment methods on the interest and total repayment:

First, adopt the equal principal and interest repayment method, and repay a combination of fixed principal and interest every month. Over the 10-year loan period, the total interest you need to pay is $31,125.25. This means that your total cumulative loan repayments will reach 131,125.25 yuan. The monthly repayment interest is 1,092.71 yuan.

In contrast, the principle of equal principal repayment is that the monthly principal repayment gradually decreases, and the interest decreases as the principal decreases. Under this plan, the total amount of interest is 28,485.42 yuan, which is reduced compared to the equal principal and interest method. The total loan repayment is 128,485.42 yuan, and the monthly repayment interest is 1,304.17 yuan, which is slightly higher than the equal principal and interest method, but the monthly principal repayment is more.

Therefore, the monthly burden of choosing the equal principal and interest repayment method is relatively low, but the total interest is higher; while the equal principal repayment method has slightly higher monthly interest, but the total interest and total loan amount will be higher. few. Depending on your repayment ability and financial plan, you can decide the most suitable repayment method based on your personal circumstances.