Everyone knows there are several types of loans to buy, but do you know that there are many options to pay back? The following are some of the mainstream repayment modalities。

What are the ways to repay a mortgage

First, there is an equivalent repayment of principal. In this way, the principal and interest of the loan are added together and then distributed equally over each month. Generally, this approach is more appropriate for people with stable incomes and is the most common way to repay。

This is followed by an equivalent principal repayment, that is, a monthly repayment equal to the sum of the principal and residual interest due on the loan. This approach may begin with a greater burden than equivalent principal repayments, but over time the burden will gradually become lighter。

This is followed by a lump-sum debt service, which usually applies to loans of shorter duration, and is generally open only to small short-term loans。

There is also the equivalent incremental and equal diminishing repayment, a variation of the equivalent principal repayment, which divides the loan cycle into a period of time at which the repayment amount may increase or decrease equally。

We also have a repayment modality for the repayment of principal on time, which requires that the borrower and the bank consult to determine the date of repayment。

Finally, the principal repayment plan, whereby the borrower and the bank negotiates a principal repayment of not less than $10,000 at a time and two repayments at intervals not exceeding 12 months, may be repaid on a monthly or quarterly basis。

As to whether or not the repayment date can be adjusted, normally the repayment date is the lending date and cannot be adjusted. However, the repayment period may be changed by way of early repayment and may be reduced by way of partial repayment。