When we talk about mortgages, we usually have this problem. Why do mortgages always go on a monthly basis? This is a general problem, and let us get to know。

Why are mortgages paid on a monthly basis

First, monthly repayments facilitate management and risk control by lending institutions. This facilitates real-time leverage by lending institutions of borrowers ' credit positions and repayments, facilitating risk management and effective control。

Second, monthly repayments were consistent with the cash flow characteristics of most borrowers. Many have a fixed monthly wage income and regular mortgages facilitate their financial planning。

Finally, it is more concise. The calculation of interest, as well as the operation of repayments, allows banks and lending institutions to more effectively calculate the repayment amounts and interest costs due each month, due to a fixed monthly basis。

So how do you choose how to repay the mortgage? The mainstream approach consists of equivalent principal and equivalent principal and interest payments. The choice which is the most advantageous in particular needs to be made on a case-by-case basis。

The advance repayment of the equivalent principal is higher than the equivalent, and the repayment of the equivalent principal may reduce some of the life pressure for home buyers whose income is growing. Equivalent principal may be more appropriate for families whose income is stable and who are subject to a certain repayment pressure。

Overall, the principal equivalent saved interest on the loan in relation to the principal equivalent throughout the repayment period. If you want to save interest, the equivalent principal may be a good option。