At present, there are two common repayment methods, one is equal principal and interest repayment, and the other is equal principal repayment. The average capital repays the same principal every month, and the loan interest is calculated according to the actual loan amount. Although everyone has to pay a lot of money every month in the early stage, it is the interest generated in that month and the fixed loan principal. Because the interest paid when repaying the loan in advance is non-refundable, after the same loan for a period of time, the interest paid by the equal principal and interest repayment method will be higher than that by the average capital repayment method. Therefore, if the buyer wants to repay the loan in advance from the beginning, and the loan period is not very long, it is best to choose the average capital repayment method.
In addition, the first third repayment period is the most cost-effective, because the later, the less the principal, the less the interest. Once the repayment period exceeds one third, it is not suitable to repay the loan in advance, because most of the repayment at this time is the principal. Therefore, in the first third of the repayment period, equal principal repayment is the most cost-effective.