1, average principal repayment method: this repayment method is to allocate the principal to each month and pay off the interest from the previous repayment date to the current repayment date. Under the same conditions, the total interest paid by this repayment method is less than the equal principal and interest, and the repayment burden will be gradually reduced with the passage of time. However, because the interest is decreasing, the monthly payment will be higher than the matching principal and interest in previous years, which is very stressful, so this repayment method is more suitable for people with high income and low repayment pressure.
2. Matching principal and interest repayment method: refers to adding the total principal and interest of mortgage loans and then sharing them equally every month during the repayment period. As a repayment, he pays a fixed amount to the bank every month, but the proportion of principal in the monthly repayment increases month by month, and the proportion of interest decreases month by month. Families with stable income and economic conditions that do not allow excessive investment in the early stage can choose this method.
3. Interest before this Law: also known as the final settlement method, means that the borrower pays off the loan principal and interest on the loan maturity date and repays the interest every month. Generally applicable to loans with a term of 1 year (inclusive).