Fixed monthly repayment of equal principal and interest. Matching principal and interest refers to a loan repayment method, that is, repaying the same amount of loans (including principal and interest) every month during the repayment period. Average capital divides the total loan into equal parts during the repayment period, and repays the same amount of principal and the interest generated by the remaining loans in that month every month.

Matching the principal and interest is to add up the total principal and interest of the mortgage loan and then share it equally every month during the repayment period. The proportion of principal in monthly repayment increases month by month, and the proportion of interest decreases month by month. This method is the most common and recommended by most banks for a long time. The loan with equal principal and interest is calculated according to compound interest. At the settlement time of each repayment, the interest generated by the remaining principal will be calculated together with the remaining principal (loan principal), that is to say, the outstanding interest will also be calculated. The average capital repayment method keeps the principal unchanged, the interest decreases month by month, and the monthly repayment amount decreases; Because the monthly repayment amount is fixed and the interest is getting less and less, the lender is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less. Compared with the two, in the case of the same loan term, amount and interest rate, in the early stage of repayment, the monthly repayment amount of average capital is greater than the equal principal and interest, while in the later stage, the monthly repayment amount is less than the equal principal and interest.

2. Is the monthly fixed repayment amount the average capital?

No, the average capital and monthly repayment amount are not 1, and decrease month by month.

Matching principal and interest: monthly principal repayment increases month by month, and interest repayment decreases month by month. The monthly repayment is fixed, which is conducive to personal repayment arrangements. The prepayment amount is less than the average capital, and the prepayment pressure is relatively small.

Average capital: the monthly repayment of principal is fixed, the monthly repayment of interest is reduced, and the pressure of early repayment is great. However, due to the relatively large repayment of principal in the early stage, the total interest is far less than the matching principal and interest, which is also conducive to early repayment. If prepayment is affordable, it is recommended to choose the repayment method in average capital.

I want to ask about the difference between average capital and equal principal and interest.

Matching principal and interest means that the monthly repayment amount is fixed, but in the average capital, the monthly repayment amount is different, and the matching principal repayment is less and less.

4. Is the monthly fixed repayment the average capital?

No, the average capital and monthly repayment amount are not 1, and decrease month by month. Matching principal and interest: monthly principal repayment increases month by month, and interest repayment decreases month by month. The monthly repayment is fixed, and the repayment amount is less than the average capital, so the pressure of early repayment is relatively small. Average capital: the monthly repayment of principal is fixed, and the interest paid every month is decreased. Repaying the principal is relatively large, which is also conducive to early repayment. If the early repayment can bear the suggested choice