Does the repayment on the loan always remain the same amount?

Good evening

Quick question.
How does the repayment work with a loan? Does it change over the term, or does it always stay the same amount?

chris

Hello c.merenda,

if you have taken out a so-called annuity loan, the interest decreases within the monthly constant installment and the repayment increases.

Example:

100,000 EUR at 5% interest and 1% repayment = monthly rate 500 EUR

1st month: 416.67 EUR interest + 83.33 EUR repayment = 500 EUR
2nd month: 416.32 EUR interest + 83.68 EUR repayment = 500 EUR ...

(in the 2nd month you only pay interest on 99,916.67 EUR, etc...)

Best regards

M. Thiemann