At present, the two most commonly used repayment methods are equal principal and interest repayment method and average capital repayment method.

1.

Matching principal and interest repayment method: that is, the borrower repays the loan principal and interest with the same amount every month. In this way, at the initial stage of repayment, the interest expense is the most, and the principal is relatively small. In the future, with the gradual reduction of monthly interest expenses, the returned principal will gradually increase.

2.

Average capital repayment method, that is, the borrower repays the same amount of loan principal every month, and the interest decreases month by month with the principal, and the monthly repayment amount also decreases month by month.

Summary: Under the condition of the same loan time, the interest paid by the equal principal and interest repayment method is higher than that by the average capital repayment method. Therefore, if you plan to repay in advance, you'd better choose the average capital repayment method. Depending on the repayment method, the borrower can choose to reduce the mortgage loan for this period or reduce the mortgage loan in full.