The less, the less, because the equal principal repayment. During the repayment period, the loan amount will be equally allocated to the monthly payment.

Interest is the interest generated by the remaining unpaid loan amount in the current month. The monthly interest will decrease, and the repayment amount will naturally decrease.

Extended data:

Matching principal and interest is also called regular interest payment. This repayment method is that the borrower repays the same amount of loan (including principal and interest) every month during the repayment period, and the monthly loan interest is calculated according to the remaining loan principal at the beginning of the month and settled every month.

That is to say, in the matching principal and interest method, banks generally collect the interest of the remaining principal first, and then the principal, so the proportion of interest in the monthly payment will decrease with the decrease of principal, and the proportion of principal in the monthly payment will increase, but the total monthly payment will remain unchanged.

Advantages: the monthly repayment amount is the same, and the repayment is stable.

Disadvantages: paying more interest.

Average capital is also called unequal interest repayment method.

This repayment method is to distribute the total amount of loans evenly during the repayment period, and repay the equal principal and interest generated by the remaining loans in the current month every month. In this way, because the monthly repayment amount is fixed and the interest is getting less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less.

That is to say, in the average capital method, the amount of principal returned every month is always the same, and the interest decreases with the decrease of the remaining principal, so the monthly repayment amount is gradually reduced.

Advantages: You can save more interest.

Disadvantages: the early repayment pressure is great.

The two repayment methods have their own characteristics and are suitable for different buyers.

It is more suitable for young buyers with higher income and early repayment plan to choose average capital's repayment method; Matching principal and interest is suitable for families with relatively stable income and not much initial investment.

. In other words, property buyers should analyze the specific situation and choose the repayment method according to their repayment ability. If the income is high, the repayment method in average capital will save more interest.

1. In the case of the same loan term, amount and interest rate, the monthly repayment amount of average capital repayment method is greater than the equal principal and interest at the initial stage of repayment, but the monthly repayment amount at the later stage is less than the equal principal and interest.

Two, the final maturity, average capital and interest than the average capital to pay considerable interest.

Third, if the repayment is made in advance, the equal principal and interest method will be very unfavorable, because the interest has basically been paid in the early stage, but the principal has not been paid;

If the average capital method is used to repay the loan in advance, the interest in the later period can be avoided because of the large proportion of the principal repaid in the earlier period.

Four, the equal principal and interest repayment method, the principal increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged;

In the average capital, the principal remains unchanged, the interest decreases month by month, and the number of monthly repayments decreases.

Five, the repayment amount in the average capital is fixed, which can control the expenditure of family income in a planned way, and also facilitate each family to determine the repayment ability according to their own income;

Matching principal and interest repayment method is convenient to arrange income and expenditure because the monthly repayment amount is the same, and it is suitable for borrowers whose income is relatively stable because economic conditions do not allow early repayment and excessive investment.