For all loans with installment repayment, you can choose equal principal and interest or average capital, not limited to mortgage loans. Of course, what kind of repayment method to choose must be determined when signing the loan contract. If the customer does not choose the repayment method, it defaults to the repayment method of equal principal and interest.

Matching principal and interest with average capital, it should be said that both are beneficial.

Matching principal and interest: monthly principal repayment increases month by month, and interest repayment decreases month by month. The monthly repayment is fixed, which is conducive to personal repayment arrangements. The early repayment amount is less than the average capital, and the early repayment pressure is relatively small.

Average capital: the repayment of principal is fixed every month, and the interest paid every month is reduced, so there is great pressure to repay in advance. However, due to the relatively large repayment of principal in the early stage, the total interest is far less than the equal principal and interest, which is also conducive to early repayment.

If prepayment is affordable, it is recommended to choose the repayment method in average capital.