When it comes to loans, the two types of repayment that we often encounter are equivalent principal and equivalent principal. In most cases, if there is no specific form of repayment at the time of the loan, the bank ' s default would be in the form of an equivalent interest rate. But here, there is one question that deserves our in-depth consideration: has the interest rate on home-buying loans, which has been fixed at the same level

What difference does it make between principal and principal

The interest rate on home-buying loans with an equivalent interest rate is not constant. It depends on the interest rate that you entered into. If the loan contract provides for a fixed rate of interest, then the loan with the same principal is a fixed rate of interest. On the contrary, if your loan contract provides for a floating interest rate, then the loan with an equivalent interest rate is a floating rate。

Then again, the difference between the principal and the principal. Equivalent principals are characterized as monthly repayments that vary and are formally decreasing on a monthly basis. In this way, the principal of the loan is shared equally among the total months of repayment, together with interest on the remaining principal of the prior period, resulting in a monthly repayment. As a result, in the repayment modality of the equivalent principal, the largest repayment was made in the first month, followed by monthly reductions in the following month。

As for the principal equivalent, it is characterized by constant monthly repayments. However, the ratio of principal to interest has changed from month to month, with a small share of principal in the first half, a large share of interest in the second half of the repayment period, to a small share of principal in the second half of the repayment period。

These are the elements relating to the fixed rate of interest on home-buying loans with the same principal and the difference between the same principal and the same interest. It is believed that, through this statement, these issues should be made clearer. Thank you for reading this