Repayment Methods Guide
Choose the best repayment method for your situation.
Principal Equal Repayment:
- Monthly payments decrease over time
- Total interest paid is lower
- Initial burden is higher
Principal-Interest Equal Repayment:
- Monthly payments stay the same
- Easier to budget monthly
- Total interest paid is higher
💡 Loan Guide & FAQ
What is LTV (Loan-to-Value)?
LTV represents the ratio of the loan amount to the property value. For example, if you buy a $500,000 house with a $400,000 loan, the LTV is 80%.
What is DTI (Debt-to-Income)?
DTI is the percentage of your gross monthly income that goes to paying your monthly debt payments. A lower DTI indicates a better balance between debt and income.
What is DSR (Debt Service Ratio)?
DSR measures a borrower's ability to repay loans by comparing total debt obligations to income. Stricter DSR rules may limit your maximum loan amount.