On the premise that I can repay the house loan in advance (for example, I want to pay it off in one lump sum in the third year after buying a house), is it cost-effective for me to borrow for 20 years or 30 years? Both equal principal and interest and equal principal repayment need to pay principal and interest at the same time. Matching principal and interest is to pay the same amount every month, but at first, the interest is more and the principal is less. The repayment method in average capital is to divide your loan principal into equal parts within the loan term, and the loan principal returned every month is the same, with more first and less later.

Because the monthly repayment interest is calculated according to the loan principal, the "average capital" repayment method requires customers' repayment ability at the beginning, and the initial repayment pressure will be greater, but the monthly payment will decrease month by month, and relatively speaking, the repayment pressure will become smaller and smaller. At the same time, under the condition of constant interest rate and other conditions, the interest paid by "equal principal and interest" repayment method will be higher than that paid by "average capital" repayment method.

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