"Monthly payment" refers to the monthly payment that the lender needs to pay to the loan bank according to the loan agreement during the repayment period when purchasing commercial housing, motor vehicles and other products by mortgage, including the principal and corresponding interest.
The repayment methods of mortgage loans in China are: one-time repayment with a loan term exceeding 1 year, and equal principal and interest repayment with a loan term exceeding 1 year.
Matching principal and interest repayment: the monthly repayment amount is the same, but the principal part increases month by month and the interest part decreases month by month. The total interest paid during the repayment period is higher than the repayment method of the same principal.
Average capital: the monthly repayment amount decreases month by month, the principal remains unchanged, and the interest decreases month by month. All the interest expenses paid during the repayment period belong to the equal principal and interest method, but the repayment amount in the early stage (including principal and interest) is higher than that in the equal principal and interest repayment method.