Whether this can be changed depends on the contract you signed with the bank. If there are relevant clauses in the contract, you can only follow the contract. If there is no clear stipulation in the contract, I suggest you call the customer service phone of the bank for detailed consultation.
Which is more cost-effective, equal principal and interest or average capital prepayment?
Paying more principal and less interest in the early stage is obviously more suitable for general capital. In the monthly repayment amount of equal principal and interest in the previous period, the principal amount is small and the interest amount is large, which is not suitable for early repayment.
1 Characteristics of average capital
The monthly repayment amount is different, showing a state of decreasing month by month; It distributes the loan principal evenly according to the total number of months of repayment, plus the interest of the remaining principal in the previous period, thus forming the monthly repayment amount, so the repayment amount of the average capital method is the largest in the first month, and then decreases month by month, and the less it is.
2, the characteristics of equal principal and interest
In fact, the repayment amount is the same every month. In essence, the proportion of principal is increasing month by month, while the proportion of interest is decreasing month by month, and the number of monthly repayments remains unchanged. That is to say, in the "principal and interest" distribution ratio of monthly payment, the interest paid in the first half of the year is large and the principal is small. After more than half of the repayment period, it gradually turns into a small proportion of principal and interest.
3. Advantages and disadvantages of average capital.
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 balance), that is to say, the unpaid interest will also be calculated, which seems to be more severe than "rolling interest". In foreign countries, it is recognized as a loan method suitable for the interests of lenders.
4. Advantages and disadvantages of matching principal and interest
The average capital loan uses the simple interest rate method to calculate interest. At the settlement time of each repayment, it only bears interest on the remaining principal (loan balance), that is to say, the unpaid loan interest is not calculated together with the unpaid loan balance, but only the principal. Average capital: the principal remains unchanged, the interest decreases month by month, and the monthly repayment amount decreases; Matching principal and interest: the principal increases month by month, the interest decreases month by month, and the monthly repayment amount remains unchanged.