There are generally two methods of mortgage loans: equal principal and interest, and equal principal:

1. Equal principal and interest repayment method, that is, the borrower’s monthly repayment amount is fixed, among which The principal increases month by month with the repayment time, and the interest decreases month by month;

2. Equal principal repayment method, that is, the borrower’s monthly principal repayment is fixed. The principal is fixed, and the monthly loan interest decreases month by month as the principal balance decreases. Therefore, the equal principal repayment method has a large monthly repayment in the early stage of the loan, and then decreases month by month, and the equal principal repayment is stressful in the early stage. larger.

3. Differences:

①The total amount of interest is different: for the same term and loan amount, the interest for equal amounts of principal and interest is higher than that of equal amounts of principal;

②Repayment Different repayment pressures: The monthly repayment amount for equal amounts of principal is larger in the early stage, but the repayment amount becomes smaller and smaller in the later stages, so the repayment pressure is greater in the early stage and less in the later stage. For equal principal and interest payments, the monthly repayment amount is the same, so the pressure is moderate.

Response time: 2021-12-31. For the latest business changes, please refer to the official website of Ping An Bank.