Buying a house, of course, is more appropriate to buy a house in full. You don't need to pay full interest to buy a house, but you may not have enough money, so you still need to borrow money to buy a house.

The house loan is like this.

When buying a house, many buyers will choose to borrow money from the bank because of insufficient funds, and few people will buy a house in full at one time. There are many ways to borrow money, which are relatively complicated. Among them, the two most common repayment methods are equal principal and interest and average capital. But many property buyers know nothing about these two repayment methods, and even can't tell the difference between average principal and equal principal and interest?

The difference between average capital and equal principal and interest

Difference between average capital and equal principal and interest:

Average capital: the monthly repayment amount is different. With the increase of installment times, the monthly repayment amount is decreasing. In this way, the loan principal is evenly distributed according to the total repayment months, plus the interest of the remaining principal in the previous period, and the monthly repayment amount is obtained.