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Equal payment keeps the monthly amount the same throughout the loan, making it easier to budget. Principal reduction pays a fixed principal each month, so early payments are higher but total interest paid is less.

With a balloon payment loan, you pay only interest during the loan term and repay the entire principal at maturity. Monthly payments are lower, but total interest paid is the highest of all methods.

Most banks charge a prepayment penalty of 1.2–1.5% if you repay within 3 years of taking the loan. After 3 years, many banks allow penalty-free prepayment.

Fixed rates are better in a rising rate environment; variable rates are better when rates are falling. Variable rates start lower but carry the risk of rate increases, while fixed rates are stable but start higher.

Yes, a longer term means more total interest. For example, a ₩300M loan at 4.5% would cost about ₩160M in interest over 20 years, vs. approximately ₩250M over 30 years.

Refinancing means replacing your existing loan with a new one at a lower interest rate. If the rate difference is 0.5 percentage points or more, it may be worth considering — compare savings against any prepayment penalties.

A grace period is an initial phase where you pay only interest without repaying principal. Monthly payments are lower during this period, but once principal repayment begins, payments increase significantly.