好英语网房贷为什么先还利息？
对于许多购买房产的人来说，房贷是一个不可或缺的工具。在贷款期间，借款人需要按照约定的还款计划逐期偿还贷款本金和利息。然而，许多借款人会发现，在还款的过程中，所偿还的利息往往比本金要多，这是为什么呢？英文翻译为：Why is the interest on the mortgage repaid first?
Interest Rate and Loan Period: The reason why the interest on the mortgage is repaid first is mainly because of the interest rate and the loan period. Interest rates are generally higher than the principal amount of the loan, and the loan period is usually long-term, lasting for 15 to 30 years. Therefore, in order to protect the bank's interests, the borrower must repay the interest on the mortgage first.
Deposit Rate: Another reason why interest is repaid first is because of the deposit rate. Deposit rates are lower than the loan rate, so the bank can obtain more profits from interest income than from capital income. Therefore, the bank prefers to calculate the monthly repayment based on the principal and interest rate difference, rather than based on the deposit rate.
Amortization: Finally, amortization is another reason why interest is repaid first. Amortization refers to the process of gradually repaying the principal amount of the loan through installment payments. The longer the loan period, the greater the amount of principal to be repaid, and the lower the proportion of interest in each repayment. Therefore, in order to protect its own interests, the bank usually calculates repayment plans with low amortization periods first and requires borrowers to repay the principal later in time. This also explains why the interest on the mortgage is repaid first.英文翻译为：Why is the interest on the mortgage repaid first?
Interest Rate and Loan Period: The reason why the interest on the mortgage is repaid first is mainly because of the interest rate and the loan period. Interest rates are generally higher than the principal amount of the loan, and the loan period is usually long-term, lasting for 15 to 30 years. Therefore, in order to protect the bank's interests, the borrower must repay the interest on the mortgage first.
Deposit Rate: Another reason why interest is repaid first is because of the deposit rate. Deposit rates are lower than the loan rate, so the bank can obtain more profits from interest income than from capital income. Therefore, the bank prefers to calculate the monthly repayment based on the principal and interest rate difference, rather than based on the deposit rate.
Amortization: Finally, amortization is another reason why interest is repaid first. Amortization refers to the process of gradually repaying the principal amount of a loan through installment payments. The longer the loan period, the greater the amount of principal to be repaid, and the lower the proportion of interest in each repayment. Therefore, in order to protect its own interests, a bank usually calculates repayment plans with low amortization periods first and requires borrowers to repay principal later in time. This also explains why interest on a mortgage is repaid first.
