Can be considered from different angles:

1. From the perspective of prepayment,

Although the average capital interest and equal principal and interest decreased from more to less, the average capital decreased even faster. Therefore, except for the first month, whenever you choose to prepay, the average capital pays less interest, which is more suitable for those who plan to prepay.

2. From the perspective of work income.

If it is a very stable clerical job, but there is no commission and bonus, and the monthly salary is fixed, then it may be more appropriate to choose equal principal and interest. The monthly repayment amount is the same as the salary paid, which is fixed, easy to remember and easy to repay.

For people engaged in sales or business, the source of income may be unstable, sometimes more and sometimes less, so it may be more appropriate to choose average capital. First, use existing savings to repay more at an early stage. Although the income in the later period is uncertain, the repayment pressure in the later period will be very small.

3. Consider the overall planning of the family.

For example, single people, with no attachments and short loan term, choose average capital and equal principal and interest as long as they are within their planned repayment range.

However, if you have a family, there are old people in the world and young people in the world, and the loan period is long, such as a 30-year mortgage, you have to consider a lot, such as medical expenses, education expenses for children to go to school or train, and so on. Because there are too many uncertainties in the future, we can consider choosing the average capital with more upfront repayment.

Now is the era of credit, once credit is tainted, many things will be difficult to move. Online lending is also a source of big data. Once big data is confused and classified as high credit risk, it will affect credit reports and living restrictions. People who don't know about credit reporting and big data can check their credit data in Beijian, understand their credit data, loan records and risks, and help everyone pay attention to protecting their credit records.

Extended data:

Which is more suitable, average capital or equal principal and interest?

Understand the concepts and characteristics first, then make differences and comparisons, and finally analyze the people who are suitable for each other, and you can find the answer.

First, the concept and characteristics of average capital and equal principal and interest

It is explained by three elements: monthly repayment, monthly principal repayment and monthly interest repayment. Monthly repayment amount = monthly principal repayment+monthly interest repayment.

1 average capital

The monthly principal payable is equal, and the monthly interest payable and monthly repayment amount gradually decrease, specifically, the first month is the most and the last month is the least.

2. Equal principal and interest

The monthly repayment amount is equal, but the distribution of monthly principal and monthly interest is different. The law is that the monthly principal increases gradually and the monthly interest decreases gradually.

Second, the difference between average capital and equal principal and interest.

Mainly lies in these two points:

1, the monthly repayment amount is different.

The average capital decreases month by month, and the principal and interest are equal every month.

The monthly repayment amount in the early stage: average capital is equal to the principal and interest, and it is nearly flat in the middle stage. The monthly repayment amount in the later stage: average capital is equal to the principal and interest.

2. The interest generated is different.

The monthly decreasing interest difference of average capital is relatively large, while the monthly decreasing interest difference of equal principal and interest is relatively small

Total interest: average capital "equal principal and interest".

Therefore, if you want to save interest, it is more appropriate to choose average capital; If you want to average the monthly repayment pressure, then it is more appropriate to choose equal principal and interest.

Can the loan be changed to average capital?

The repayment method of equal principal and interest can be changed to equal principal repayment.

Under the following circumstances, with the permission of the bank, the matching principal and interest can be changed to average capital:

1. At present, it has sufficient repayment ability, and it can repay in full and on time every month on average. Because the average capital repayment amount in the early stage is large, and then decreases month by month, it is more suitable for lenders with strong repayment ability in the early stage.

2. It is planned to repay in advance, and the repayment of equal principal and interest has not yet reached the mid-term. The average capital repayment method mainly repays the principal in the early stage and is suitable for early repayment. Matching principal and interest is to add up the principal and total interest of mortgage loan, and then share it equally every month.

Extended data:

Advantages: Pay the same amount every month. As a lender, the operation is relatively simple. It is also convenient to arrange income and expenditure by bearing the same amount every month.

Disadvantages: Because the interest will not decrease with the repayment of the principal amount, the bank takes up a long time of funds, and the total interest of repayment is higher than the average capital repayment method to be introduced below.

Applicable people: families with stable income, buying a house for self-occupation and economic conditions that do not allow excessive investment in the early stage. You can choose this way, such as civil servants, teachers and other groups with relatively stable income and job opportunities.

Baidu Encyclopedia-Equal principal and interest repayment method

What conditions does the average capital need for these people to choose?

; ? When you go to the bank for a loan, you should choose the repayment method, usually average capital or equal principal and interest. Because we are not professionals and don't often borrow money, we don't know what conditions the average capital needs and what conditions it needs to match the principal and interest. I'm here to tell you about the handling of these two.

Average capital

If you want to know what is needed to deal with average capital, you must first understand the characteristics of average capital. The average capital pays the same principal every month and pays off the interest in that month. Because the monthly interest decreases with the decrease of the principal, the monthly repayment amount is gradually decreasing. The advantage of this repayment method is that the total interest is low and there is no loss in prepayment. The disadvantage is that the early pressure will be greater.

What does the average capital need?

1, the current income is relatively high, which can adapt to the greater repayment pressure and will not affect the normal life because of repayment;

2. There is a plan for prepayment, and the use of average capital can avoid returning unnecessary interest;

It is certain that the future income will gradually decline. If you don't repay the loan principal in time now and reduce the repayment pressure in the future, you may be unable to repay it in the future.

Average capital plus interest

In the same way, if you want to know what conditions are needed to handle equal principal and interest, you must first understand the characteristics of equal principal and interest. The monthly repayment amount of equal principal and interest is the same, but the proportion of principal and interest in the repayment amount will change, the proportion of principal is rising, while the proportion of interest is declining. The advantage of this repayment method is that the initial repayment pressure is not great, and there is no need to check the monthly repayment amount, which saves worry and effort. But the disadvantage is that the total interest is greater than the average capital interest, and early repayment is very unfavorable.

What are the conditions for equal principal and interest?

The income of 1 is not very high, but it is very stable, and will gradually increase with the growth of experience in the future;

2. There is no plan to prepay, so you don't have to worry about paying extra interest;

Here, I will tell you what conditions the average capital needs, and what conditions it needs to match the principal and interest. You can choose the repayment method according to your actual situation. Friends who plan to borrow money may wish to have a look. There are many products here and the repayment method is flexible. Not only can it be repaid in installments, but it can also be repaid while borrowing.

Can a loan with equal principal and interest be converted into average capital?

At present, the repayment method of personal housing loan of Bank of China can be converted between average capital and equal principal and interest. Changing the repayment method will generate certain business expenses. Please consult the loan handling bank for specific change procedures and charging standards.

The above contents are for your reference. Please refer to the actual business regulations.

If you have any questions, please contact online customer service of Bank of China.

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