Many people take out a mortgage, but end up paying a large amount of interest. Experts say that those who choose "equal principal and interest" repayment method often end up paying more interest than they realize. According to the Ministry of Land, Infrastructure, Transport, and Tourism, the most popular mortgage repayment method is "equal principal and interest" , where the monthly repayment amount is fixed. However, experts warn that this method can lead to a situation where more than half of the total repayment amount is interest. Takashi Fujiwara, a financial planner, says that when taking out a mortgage, people tend to focus on the monthly repayment amount, and often choose the "equal principal and interest" method without fully understanding the implications. Fujiwara advises people to calculate the total interest paid over the life of the loan, and to consider choosing a different repayment method, such as "equal principal" , which can result in significant interest savings. Fujiwara also recommends that people consider refinancing their mortgage if interest rates have fallen since they took out their loan. The Ministry of Land, Infrastructure, Transport, and Tourism provides a mortgage repayment calculator on its website, which can help people understand the total repayment amount and interest paid over the life of the loan. Experts say that by carefully considering the repayment method and interest rates, people can save a significant amount of money on their mortgage repayments.
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