Which is more cost-effective, equal principal and interest or average capital?
Average capital: Just like the principal that needs to be repaid every month, the interest will gradually decrease with the gradual decrease of the principal. Equal principal and interest: the monthly repayment amount is the same. Part of it is used to pay interest and part of it is used to pay principal. For property buyers, the difference between the two methods will produce completely different results. Matching principal repayment can quickly reduce the repayment pressure and reduce the money that buyers spend on interest, but prepayment is very painful. And more people chose equal principal and interest.
What's the difference between the equal principal and interest and the average fund to buy a house loan?
1, the monthly repayment amount is different. The monthly repayment amount of average capital is different, showing a state of decreasing month by month; It distributes the loan principal evenly according to the total number of months of repayment, plus the interest of the remaining principal in the previous period, thus forming the monthly repayment amount. Therefore, the repayment amount in the average capital is more than one month, and then it decreases month by month, and the less it is. Matching principal and interest means the same monthly repayment amount. In essence, the proportion of principal increases month by month, while the proportion of interest decreases month by month, and the number of monthly repayments remains unchanged. That is to say, in the "principal and interest" distribution ratio of monthly payment, the proportion of interest repaid in the first half is large and the proportion of principal is small, and it gradually turns into the proportion of principal and interest is small after the repayment period is over half. 2. Suitable for different people. The average capital method is more suitable for lenders with strong repayment ability some time ago, because the repayment amount is relatively large in the early stage and then decreases month by month. The monthly repayment of equal principal and interest is the same, so it is more suitable for families with normal spending plans, especially young people. Moreover, with the promotion of age or position, income will increase and living standards will naturally improve; If such people choose the principal method, the pressure in the early stage will be very great.