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What is the best way to repay a house

What is the best way to repay a house

More and more people choose to buy a house with loans. The interest paid by different mortgage repayment methods is different. If the repayment time is long, they always feel that they have paid a lot more interest. But if the repayment time is short, they can't get so much money all at once. I believe many friends have such questions. Is there the most appropriate time to repay the mortgage? How can the mortgage be returned?

1. Sub mortgage

The repayment method of sub mortgage refers to that the new lending bank helps the customer to find a guarantee company, repay the money of the original lending bank, and then re apply for loans in the new lending bank. If the bank you are in can't give you a 70% discount on the mortgage interest rate, you can change jobs and find the most affordable bank.

2. Monthly interest adjustment

Because the fixed interest rate is in the rising channel when it is introduced, the monthly interest rate adjustment method is slightly higher than the floating interest rate in the same period. As long as the central bank increases the interest rate once, its advantages will appear immediately. But once the interest rate is cut, the buyers who choose it will suffer. Therefore, in the face of interest rate cuts, we should quickly change the fixed interest rate of housing loan to floating interest rate.

3. Repayment of loans with provident fund

There are two ways to offset the loan of provident fund; One time or month by month, depending on the rules and regulations of the place where the provident fund is located. When we apply for Housing portfolio loan, we must try our best to make full use of provident fund loan and extend the loan term. While enjoying the benefits of low interest rate, we should reduce the monthly repayment of provident fund to the greatest extent. The term of commercial loan should be shortened to the greatest extent, and the monthly repayment amount of commercial loan should be increased as much as possible within the affordability of family economy.

4. Biweekly saving interest

Biweekly payment refers to the change of personal mortgage loan repayment from once a month to once every two weeks, and each repayment amount is half of the original monthly payment. Although the same amount of housing loan still needs to be paid every month, the "biweekly payment" shortens the repayment cycle, which is higher than the original monthly repayment frequency, and the principal of the loan will also decrease faster, which means that the loan interest returned during the whole repayment period will be far less than the loan interest returned during the monthly repayment, and the speed of principal reduction will be accelerated. As a result, the repayment period is shortened and the total expenditure of the borrower is saved.

5. Equal principal and interest repayment method

The repayment method of equal principal and interest is suitable for people with stable income. Equal principal and interest refers to the sum of the total principal and the total interest of the mortgage loan, which is then evenly distributed to each month of the repayment period. As a repayment person, he returns a fixed amount to the bank every month, but the proportion of principal in the monthly repayment increases month by month and the proportion of interest decreases month by month. It can be seen that for families with stable income and economic conditions that do not allow excessive investment in the early stage, they can choose this way.

6. Equal principal repayment method

The loan repayment method of equal principal is suitable for the group with higher income. The borrower can gradually reduce the repayment burden with the increase of repayment years. This repayment method is to apportion the principal to each month and pay off the interest between the previous repayment date and the current repayment date. As time goes on, the repayment burden will gradually reduce, but because the interest is decreasing, the monthly payment amount in the first few years will be higher than the equal principal and interest, and the pressure will be greater. Therefore, this kind of repayment method is more suitable for people with high income and little repayment pressure.

7. Prepay the loan and shorten the term

Before paying back the loan in advance, you need to make a good account. Not all paying back the loan in advance can save money. For example, if the repayment period is more than half, and the principal of the monthly repayment is greater than the interest, the significance of prepayment is not great.

Each repayment method has its own characteristics, which is suitable for different groups. If you can't make a one-time payment when you buy a house, you should choose a suitable repayment method according to your actual situation. Only in this way can you reduce the pressure of repayment in the future. If you choose an inappropriate repayment method, it will affect your future quality of life.