1. In the case of the same loan term, amount and interest rate, at the initial stage of repayment, the monthly repayment amount of average capital is greater than the equal principal and interest, but at the later stage, the monthly repayment amount is less than the equal principal and interest.
Two, the final maturity, average capital and interest than the average capital to pay considerable interest.
Third, if the repayment is made in advance, the equal principal and interest method will be very unfavorable, because the interest has basically been paid in the early stage, but the principal has not been paid; If the average capital method is used to repay the loan in advance, the interest in the later period can be avoided because of the large proportion of the principal repaid in the earlier period.
Four, the equal principal and interest repayment method, the principal increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged; The repayment method in the average capital keeps the principal unchanged, the interest decreases month by month, and the number of monthly repayments decreases.
Five, the repayment amount in the average capital is fixed, which can control the expenditure of family income in a planned way, and also facilitate each family to determine the repayment ability according to their own income; Matching principal and interest repayment method is convenient to arrange income and expenditure because the monthly repayment amount is the same, and it is suitable for borrowers whose income is relatively stable because economic conditions do not allow early repayment and excessive investment.
Extended data:
Compared with the two, in the case of the same loan term, amount and interest rate, in the early stage of repayment, the monthly repayment amount of average capital is greater than the equal principal and interest, while in the later stage, the monthly repayment amount is less than the equal principal and interest. That is to say, according to the whole repayment period, the repayment method in average capital will save the expenditure of loan interest.
Generally speaking, the repayment method of equal principal is suitable for borrowers who have a certain economic foundation, can bear heavy repayment pressure in the early stage and have an early repayment plan. Matching principal and interest repayment method is convenient to arrange income and expenditure because the monthly repayment amount is the same, and it is suitable for borrowers whose income is relatively stable because economic conditions do not allow early repayment and excessive investment.
Comparing the two repayment methods, it is concluded that the equal principal and interest pay considerable interest more than the average principal.
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