First of all, there are different ways to repay the loan. Choosing the equal principal and interest repayment method will repay the same amount every month, while choosing the average capital repayment method will reduce the repayment interest year by year because of the passage of time until it is fully repaid. Mortgage loans will also lead to different repayment amounts in the first month and the second month because of the number of days to calculate interest. Because the first month's lending time is uncertain, and the repayment time is fixed, the first month will be less than a natural month, so the interest calculation of the first month will be less than that of the second month. Even if the principal and interest are equal, this result will be caused for this reason.

What is the difference between equal principal and interest and average capital?

1. The repayment amount is different. Matching principal and interest means that the monthly repayment amount is fixed, the proportion of monthly repayment of principal is increasing, and the proportion of interest will be smaller and smaller. On the other hand, the average capital repays the same principal every month, but because the remaining total principal is less and less, and the interest is relatively less and less, the amount to be repaid every month is less and less.

2. Suitable for different people. Matching principal and interest is suitable for people with small deposits but stable income, because the monthly repayment amount is the same. The average capital is suitable for people with certain savings and good income, as well as older people with certain work experience. Even if you are old, you can only get a pension in the end, and the pressure will not be too great when you repay later.