1. What is equal principal and interest?
Matching principal and interest repayment, also known as regular interest payment, means that the borrower repays the loan principal and interest in equal amount every month, calculates the monthly loan interest according to the remaining loan principal at the beginning of the month, and settles it every month. Add up the total principal and interest of the mortgage loan and distribute it evenly to each month of 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. As time goes by, the proportion of principal in repayment will be higher and higher, the proportion of interest will be lower and lower, and the overall interest will be much higher than the proportion in average capital.
Second, what is average capital?
Average capital repayment method, also known as repayment method with interest and principal and average capital with unequal interest. The lender will allocate the principal to each month and pay off the interest from the previous trading day to the repayment date. Compared with the matching principal and interest, the total interest cost of this repayment method is lower, but the principal and interest paid in the early stage are more, and the repayment burden is reduced month by month.
3. Who is suitable for general capital?
1. People with high current income and uncertain future income.
If it is a middle-aged person who buys a house with a loan, it is more suitable for this way, with higher salary and more stability. Although I still have some savings, I will soon face the pressure of providing for the aged, and there will be more and more places to spend money. Then when the income reaches the peak and the pressure is not great, the pressure will be much better in the future.
2. There is a plan for prepayment.
Because the average capital has more principal in the early stage, the less principal in advance, the less interest, and the more interest in the early stage of equal principal and interest, so there is no advantage in early repayment. Therefore, the average capital is suitable for people with prepayment plans.
3. People who buy houses and manage money
If you have the money to buy a house and manage your finances, it shows that your economy may be well off. In other words, in terms of money, life is not too stressful. Since it is a financial house purchase, the less natural interest, the better. So it is more appropriate to choose average capital.
4. Who is suitable for matching principal and interest?
Suitable for young people with less income in the early stage. Because for young people, because they don't earn much money now, of course, they may earn more and more in the future, and there is no pressure to support the elderly for the time being, so it is best to choose the same principal and interest.
Therefore, the matching principal and interest is more suitable for ordinary families with working class and stable income, and the mortgage can not only bear, but also ensure that it will not affect life.