The biggest difference between the repayment of principal and interest of mortgage loans is that the interest paid after the average capital pays off the loan is far less than the equal principal and interest. Provisions on repayment are as follows:

1, equal principal and interest: that is, the monthly repayment amount is the same (if the interest rate remains unchanged).

2. Average capital: the monthly repayment amount is reduced.

3. Mortgage repayment usually requires monthly/quarterly repayment, mostly monthly repayment. Then you can only repay the loan interest every month, and finally repay the principal at one time.

Although paying interest first can reduce the repayment pressure of each installment, banks usually do not allow mortgage repayment to pay interest first and then pay the principal.

5. Generally, banks will ask customers for equal principal and interest, and will not say that they have average capital.

Remarks: For commercial mortgage, the monthly repayment method is mostly average capital with equal principal and interest. Some banks also provide biweekly repayment and quarterly repayment, but the repayment period or repayment amount is different, and each repayment still includes interest and principal.