Why do you choose to pay the same amount of interest on your loan?
Many people loan choose repayment method will mostly look at the cost of the loan, that is, according to the loan ultimately have to pay the interest to choose, after all, the lower the interest rate loan the more money. And in the three repayment methods of equal principal, equal principal and interest, first interest after the principal, equal principal to pay the interest is the least. Because the equal principal is characterized by the loan amount, loan interest rate, repayment time is the same case, the total monthly payment decreases month by month, the principal remains unchanged, but the interest rate to pay more in the early stage, although the interest rate to the back will be slowly reduced, but the pressure of the early repayment of the larger, in this case, the lender is likely to have a broken situation. And compared to the equivalent principal, the equivalent principal and interest monthly payment is unchanged, the principal portion of the monthly increment, the interest portion of the monthly decreasing, the repayment pressure is more balanced, as long as the borrower's income is stable or the basic will not be the case of a broken payment, the equivalent of the borrower to pay a certain amount of interest as the price, try to ease the pressure on their own cash flow, so they do not have to pay back to make a very painful. Of course, it is not to say that the loan must choose to equal principal and interest, after all, different people's economic strength is different, naturally, the choice of which is the most favorable to them. Like if the borrower's economic strength is relatively strong, the choice of equal principal is still good, and even early repayment, so more interest savings. The above is "why the loan are choosing equal principal and interest" of the relevant introduction, I hope to help you.