The so-called matching principal and interest repayment, that is, the same amount within one month, is the same principal and interest. The average of all interest generated during the redemption period is the amount that must be repaid every month. In other words, you set the monthly repayment amount at the beginning, but the repayment amount in the first month and the last month has not changed. The repayment interest of equal principal and interest is greater than the repayment interest of the same principal. Usually recommended by the bank.
The interest generated by the payment method of equity principal and interest is higher than the average capital. Take a 30-year loan 1 10,000 as an example. Under the mortgage interest rate of 4.9%, the mortgage interest rate in average capital is 73,7041.67 yuan, while the equivalent principal and interest is 9 106 16. 19 yuan, and the difference between them is only 200,000 yuan. In this way, from the perspective of bank income, there will be more interest to be repaid.
Many investors expect to repay the loan funds when they have enough funds in one day. If you get the same principal and interest in the same way, obviously the bank will suffer huge losses. Then, in terms of calculation method, is the proportion of principal and interest in the future greater? It's moving forward. For future defaults, banks will be more favorable.
Therefore, according to the actual situation, choose the average debt service or the average debt service. If you have a high monthly income and can afford a high monthly repayment amount, you can choose the same principal as this repayment method, which can save a lot of interest. However, if you are an ordinary wage earner and your monthly income is not high, it is more appropriate to choose the same amount of principal and interest, which can reduce the monthly burden in the early stage.