On the one hand, the interest rate of deposits is reduced, and on the other hand, people feel the increasingly obvious inflation. How many years is the most cost-effective mortgage loan? Now prices are soaring, so many people will choose to borrow to buy a house. How many years is the most cost-effective mortgage loan?
The length of the loan has its own advantages and disadvantages
In fact, the choice of loan period should be based on family income. Generally speaking, the shorter the loan term, the less interest the borrower pays to the bank, but the higher the monthly repayment amount and the greater the repayment pressure; on the contrary, the longer the loan term, the higher the total interest paid by the borrower to the bank, but the monthly repayment amount will be reduced and the repayment pressure will be reduced accordingly. Therefore, to choose how many years as the loan period, mainly depends on the level of family income.
Many people worry that if the loan term is too long, they blindly choose a loan term of 10 years or even shorter, regardless of their income. For these people, Shi MEIXIA thinks that we should 'don't be afraid of the bank earning interest'. If inflation is also taken into account, she said, money will become less valuable in the future, and it may not be as hard to borrow for years as expected.
The cost of capital should be considered in the selection of loan term
People in the bank think that the borrower must choose the loan term according to his / her personal situation. The general principle is to ensure that there is enough living expenses in addition to the monthly repayment, that is to ensure that the repayment ability has a little surplus. If it is too tight, it will easily affect the borrower's personal credit record.
The choice of loan period should also consider the cost of funds of the borrower. For those who have investment channels, long-term loans are more favorable. They can invest free funds. The return on investment is enough to repay long-term loans and have a surplus. For those who have not made other investments except for repaying loans, we should first consider avoiding paying too much interest, and we should take medium and short-term loans as appropriate.
Buy a house to pay off in full or is the loan cost-effective?
In fact, there is still a typical example in the choice of loan life, that is, if you have the money to pay in full to buy a house, do you want a loan? In fact, if the buyer has enough financial resources, he can pay off all the house money in one time, but it is still cost-effective to apply for the housing mortgage loan. Because, as long as they can obtain investment income higher than the loan interest rate, borrowers can use their own funds for other investment projects.