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How many years is a house loan the most cost-effective? What's the difference between equal principa

How many years of housing loan is the most cost-effective? How do you usually do it? When do you want to pay off the loan? Here's a brief introduction to you, and the choice of repayment method. For people who want to buy a house with a loan, you can refer to it.

How many years is the most cost-effective mortgage

What you need to know is that because of different personal conditions, the length of housing loan varies from person to person. Specific can be defined according to the following circumstances:

1. The maximum term of personal housing loan is 30 years;

2. The maximum term of personal commercial housing loan is 10 years;

3. The age of a man shall not exceed 60, and that of a woman shall not exceed 55.

The question of "how many years is suitable for housing loan" cannot be generalized. It should be discussed according to the different income of the buyer and his own economic situation. Generally speaking, the longer the loan period, the less the monthly repayment amount; the shorter the loan period, the higher the monthly repayment amount.

If the income of the lender is stable and relatively high, it is suitable to choose short-term loans. The shorter the time is, the less the interest will be. For people with high income just for temporary turnover, this can save a lot of mortgage interest. However, for people with unstable income or low income, it is more cost-effective to lengthen their life span considering their own income problems.

How long does it take to pay off the mortgage

There are many people who choose to pay off their house loans in a short period of time (1-10 years). The reasons are as follows: first, they don't like to owe money naturally, but they feel uncomfortable when they owe money, or pay back early and easy; second, they pay much less interest to the bank in a short period of time, which can't be cheap for the bank in vain! Therefore, they are very tired and hard, so they can only cut back on their clothes and food every day (a little exaggerated, of course)!

There are still some people who choose to pay off their house loans for an extra long period (30 years). The reasons are: first, there is really no money, and the monthly salary is not high, so the economic conditions decide that I can only choose 30 years; second, with an investment perspective, it's better to give so much money to the bank every month than to invest and manage money, so as to earn more money; Third, in the long run, the housing loan will not change, but the economic level and wage level will rise, and the money in the future will certainly not be as valuable as before. In this way, they still make money! Therefore, they have to pay money to the bank on time every month within 30 years.

According to the conclusion of the loan interest rate and other comprehensive conditions, my suggestion is that the buyer should choose the repayment period of 15-20, the total amount of interest paid is reasonable, and his normal living standard will not be greatly affected.

Difference of repayment method: equal principal and interest method and equal principal method

The characteristics of equal principal and interest method are as follows:

The monthly repayment amount is the same. In the distribution proportion of 'principal and interest' in the monthly supply, the proportion of interest repaid in the first half of the period is large and the proportion of principal is small. After the repayment period is more than half, the proportion of principal and interest is small. The total interest paid is more than the equal principal method, and the longer the loan term is, the greater the interest difference is.

However, since the repayment amount is the same every month, the cost and interest method can be adopted for the expenditure plan suitable for the family, especially for the young people, because the income will increase with the increase of age or the promotion of position.

The characteristics of equal principal method are as follows:

The monthly repayment amount is different. It is to divide the loan principal equally according to the total number of months to be repaid (equal principal), plus the monthly interest of the remaining principal of the previous period, to form a monthly repayment amount. Therefore, the repayment amount of the first month of the equal principal method is the most, and then it will be reduced month by month, the less.

The total interest paid is less than the equivalent principal and interest method. However, the repayment amount of this method is relatively high in the earlier period of the loan period, which is suitable for the lender with strong repayment ability in the earlier period. The principal method can be used for the older lender, because the income may decrease with the increase of age or retirement.