Mortgage loans can be divided into equal amounts of principal. When users sign a mortgage contract, they can choose the repayment method as equal principal and interest and equal principal. Users can choose the repayment method based on their personal repayment ability. In terms of total interest repayment, the total interest for repayment of equal amounts of principal is lower than the repayment of equal amounts of principal and interest. If you have strong early repayment ability, you can choose to repay the principal in equal amounts. If you want to share the repayment pressure each month, you can choose to repay the principal and interest in equal amounts. The above is the relevant content of whether you can choose equal principal amounts for home loans. Which one has less interest: equal amounts of principal or equal amounts of principal and interest?

When the loan amount is the same and the loan term is the same, the interest caused by equal amounts of principal is less than that of equal principal and interest. This is also Because the early repayment pressure is high for equal amounts of principal, and a lot of principal is not paid, which reduces the total interest generated, while the repayment pressure for equal amounts of principal and interest is the same every month, the repayment pressure is not great, but the total interest is higher. Equal principal means that the repayment pressure is high in the early stage, and later the repayment pressure becomes smaller and smaller, and the total interest is less. Equal principal and interest means that the repayment pressure is shared, but the total interest is high. Which type of borrower to choose depends on the individual situation. Now, if you are financially well-off, you can choose equal principal and interest. If you don’t have that much money and your job is not particularly stable, you can choose equal principal and interest. If you don’t choose, the bank will default to equal principal and interest. When is the most cost-effective time to repay an equal amount of principal in advance

If the purpose is to pay less interest, then the earlier the repayment period should be, the better. If the user Most of the interest has already been repaid, so it is not cost-effective to repay it early, because the interest that needs to be repaid is getting lower and lower, and most of the repayment is the principal, and the principal must obviously be repaid.

Assume that the loan amount is 1 million and the loan term is 30 years. Then after 106 months, the interest paid exceeds half of the total interest. Then the best early repayment time for the same amount of principal is 106 months ago, that is, 8 years and 10 months ago, the sooner the better. In addition, the mortgage interest rate is a floating rate. When the LPR interest rate is adjusted, the mortgage interest rate will also be adjusted (the provident fund loan interest rate will not be affected). If the interest rate rises, the mortgage interest rate will rise. On the contrary, it will often decrease, so home buyers will also You can pay off your mortgage early before interest rates rise. This article mainly writes about the relevant knowledge points about whether you can choose equal principal amounts for mortgage loans. The content is for reference only.