China
Annuity / equal installments
A repayment method in which every monthly payment is the same amount, principal and interest together, as long as the rate stays the same.
Early payments are mostly interest; the principal share grows over time. When the rate changes, for example when the promotional period ends, the bank recalculates the equal payment for the remaining term.
Total interest is higher than with a declining balance, but the first payment is lower and easier to budget for. The calculator offers both methods.
Related terms
- Declining balance
A repayment method: the same principal every month plus interest on what is still owed, so the first payment is the highest and each later one smaller.
- Loan term
The time you have to repay the loan in full, counted in months or years.
- Prepayment penalty
A fee the bank charges when you repay part or all of the loan early, as a percentage of the amount prepaid. The rate usually falls year by year.
Learn more
- Declining balance vs annuity: which fits your cash flow
Two ways to repay a home loan in Vietnam: how the monthly payment moves, how total interest compares, and when each one makes sense.