What are the differences between installment and mortgage? Installment and mortgage are so different
Buying a house has always been a hot topic. Most people will choose installment or mortgage. Do you know the difference between installment and mortgage? How to choose between the two? Let's take a look with Xiaobian.
What are the differences between installment payment and mortgage
1. The difference between installment payment and mortgage payment is: the term of installment payment generally does not exceed 1 year, and the object of submission and modification of installment repayment is the developer, and no interest is paid; The mortgage is not only long-term, but also the object of repayment is the bank, which should pay interest;
2. Specifically, the mortgage loan refers to that the buyer obtains a loan from the bank with the purchased building as collateral, and the buyer pays the bank in installments according to the repayment method and time limit specified in the mortgage contract; The bank charges interest at a certain interest rate. If the lender defaults, the bank has the right to take away the house.
3. In fact, the general installment payment is mostly used in some product transactions with long production cycle and high cost. Such as the export of complete sets of equipment, large vehicles, heavy machinery and equipment. Most of the rest payment will be paid in installments after partial or full production, shipment and shipment, or when the goods arrive for installation, commissioning, input and expiration of quality assurance.
Which is better, installment or mortgage?
1. In fact, if there is no rich money on hand, the loan is a good choice, but it depends on what you bring. The provident fund is more cost-effective, and it is more cost-effective to buy a house with a loan. We must not buy houses in overheated business districts within our own economic affordability. The space is easy to be saturated. We should look for urban areas where transportation will develop first in the next 3 to 5 years, and the interest rate is much higher than that of putting money in the bank.
2. So let's take a look at what kind of mortgage loan is more cost-effective. What suits you is better. The first is the equal principal repayment method. The repayment amount in the first month is relatively high and will be reduced month by month, so this method is often referred to as the 'decline method'. The actual monthly principal is the same, but the interest is different, from high to low.
3. What is the equal principal and interest repayment method? This repayment method divides the principal and interest of the loan into several equal parts according to the loan term, and the repayment amount is the same every month, so this method is often called the 'equal amount method'. The equal principal repayment method seems to have less interest, but it is precisely because of borrowing money that more interest is generated. This is somewhat similar to the above down payment. If there are better channels, it is better to adopt the equal principal and interest repayment method. If there is repayment ability and no other channels, the equal principal repayment method is more appropriate.
4. That's right. If you don't have rich money on hand, a loan is a good choice, but it depends on what you bring. It's more cost-effective to buy a house with a provident fund. The * is higher. We must not buy houses in overheated business districts within our own economic affordability. The space is easy to be saturated. We should look for urban areas where transportation will develop first in the next 3 to 5 years, and the interest rate is much higher than that of putting money in the bank.
Heaven does not take, but suffers from it. For our vested interests, we should do it when we should. Instead of passively waiting there. What's the difference between installment and mortgage? Which is better, installment or mortgage? These are some topics we need to pay attention to. This involves our practical interests. Only when the state really helps us to individuals is a really good policy.