Repaying Your Mortgage: A Spring Cleaning Guide


When considering a home loan, you are concerned about future repayments.

In fact, even if you borrow the same amount with a mortgage, the repayment image will change depending on the “repayment period” and “repayment method”.

If you use a mortgage loan simulation, you can estimate the monthly repayment amount, so please refer to it.

The repayment amount changes depending on the interest rate type and borrower !


  • Simulation alone does not give a good image of repayment
  • I want to know how I can imagine a repayment that suits me

Some people may feel that

So, in this article, I will explain the following questions about the repayment image of the mortgage.

  • How long does it take to get a home loan and how much do I have to pay each month?
  • How does the repayment image change between “equal principal and interest repayment” and “equal principal repayment”?
  • What is the image of repayment when “bonus payment” or “advance repayment” is made?

Please use this as a reference when considering a home loan.

Points to consider when repaying a mortgage

Even if you say, “Imagine repaying a mortgage,” some people may not know from what perspective to think.

The following 4 factors are important to consider when planning your mortgage repayments:

  1. Which repayment method
    should I use, “equal principal and interest repayment” or “equal principal repayment”?
  2. Borrowing amount
    How much to borrow with a mortgage
  3. Repayment period
    How long will it take to repay?
  4. Which interest rate
    should I choose: floating rate or fixed rate?

With PHH mortgages, the repayment image changes depending on the above four factors.

Therefore, even if you borrow the same amount, the total repayment amount will not be the same if the repayment method and repayment period are different .

Equal Principal and Interest and Equal Principal

When considering the image of repayment of a mortgage, many people are confused about the difference between “equal principal and interest repayment” and “equal principal repayment” because the words are similar.

An overview of the principal and interest equal repayments and principal equal repayments is as follows.

Equal repayment of principal and interest
A repayment method that equalizes the sum of the amount borrowed and the interest
Equal repayment of principal
A repayment method that equalizes the amount borrowed and adds interest on the balance

Equal principal and interest repayments and equal principal repayments differ in terms of what is repaid evenly.

If the interest rate is constant, monthly repayments will be the same amount.

In that respect, the principal equal repayment is characterized by the fact that the monthly repayment amount decreases as the repayment progresses , because the amount of interest added depends on the balance of the PHH mortgage .

Both principal and interest equal repayments have their own advantages and disadvantages.