Because in the calculation of equal principal and interest repayment, if it lasts for 30 years, the repayment in the early stage is mostly interest rather than principal. In other words, we have basically paid off the interest in the first seven years, and basically only paid off the principal without interest in the eighth year and beyond, so we can be more positive psychologically without interest rate interference, thus paying off the debt in the eighth year.

1. The reason why customers are advised to repay the mortgage with equal principal and interest in advance in the eighth year is because the monthly repayment amount of equal principal and interest remains unchanged throughout the repayment period, the ratio of principal and interest changes constantly, the interest accounts for a large proportion in the early repayment period and the principal accounts for a large proportion in the later repayment period.

2. For a mortgage with a loan term of 20 years, by the eighth year, the principal ratio has exceeded the interest. Since the sixth year, the proportion of principal has actually gradually exceeded interest. If the customer does not repay in advance, the interest in the later period is similar. If they repay in advance, they can't reduce much interest, which is not cost-effective.

3. The average capital repayment method of mortgage is actually similar, because the average capital divides the principal into equal parts, and the same principal and the interest generated by the remaining loans in the current month are returned every month, so the interest is less and less with the continuous repayment.

4. If the customer chooses to repay part of the mortgage in advance in the early stage of repayment, the interest can be reduced more. Of course, we also need to pay attention to the fact that mortgage loans generally have provisions on the time of prepayment, and prepayment can only be made one year after the repayment plan is completed on time, so it is not possible to advance too early. If you repay in advance before the specified time, you may have to pay liquidated damages.

Matching principal and interest refers to a loan repayment method, that is, repaying the same amount of loans (including principal and interest) every month during the repayment period. Equal principal and interest and average capital are not the same concept. Although the monthly repayment amount may be lower than that in average capital at the beginning, the interest paid in the end will be higher than that in average capital, which is also a method often used by banks. That is to add up the total principal and interest of the mortgage loan, and then distribute it evenly to each month of the repayment period. The monthly repayment amount is fixed, but the proportion of principal in the monthly repayment amount increases month by month, and the proportion of interest decreases month by month. This method is the most common and recommended by most banks for a long time. Matching principal and interest repayment method refers to the borrower's equal repayment of loan principal and interest every month, in which the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled every month. The average capital repayment method means that the borrower repays the loan principal with the same amount (loan amount/loan months) every month, calculates the loan interest according to the remaining loan principal at the beginning of the month, and settles it every month, and the sum of the two is the monthly repayment amount.