There are always many arguments about loans. There is a saying that has been around for a long time and most of our friends must have heard it before.
"A mortgage is the cheapest and largest amount of money an average person can borrow from a bank in their lifetime."
Countless home buying experts, self-publishers, are trying to convince home buyers that it is best to borrow for as long as you can, preferably to pay it back slowly after 30 years. Many 自願醫保計劃people have listened to this and extended their loans to 30 years, and many of my friends have been reflecting on this issue. Let's start with this.
The longer the loan, the better the development or the shorter the better?
Many people say that the longer the mortgage the better, in fact, there is a major premise, that is, mortgage rates are low. The first sentence appeared when mortgage rates were only 4 points, and balance sheet rates were above 3 points that year. For homebuyers, the simple financial approach actually brings a greater return than paying a mortgage outright, so that they can understand the long-term loan options.
Another reason is "anti-inflation", that is, the monthly payment of 2,000 years now should be completely different from the monthly payment of 2,000 years thirty years ago, which seems to be a large number now, but in the future it may be the price of two bowls of noodles.
But when we can take a closer look at their current loan market environment, the middle of this year that "high interest rates, slow approval, slow release" time, in fact, let many friends do 私人分期貸款not realize that the way to receive a mortgage has developed is unlikely to be easy, and companies are often 5%, 6% or even above the mortgage interest rate, has made The mortgage still doesn't look "good value" enough.
And from the total amount of interest income, the difference between long and short loans is very large, the same 800,000 loans, at the same interest rate, loans for 10 years and loans for 30 years between the total amount of interest costs can be reduced by almost 2 / 3, the amount of monthly repayment of funds standard difference of twice, which is almost no difference between a suite in a small city.
There is usually a recommendation about whether the loan is long or short: it depends on your income. If they are young, on the rise in the workplace and still have a long future, then a 30-year loan term is obviously easy; if middle-aged people buy a house, growth is almost at its peak. Therefore, it is recommended to keep the loan repayment period as short as possible to reduce the risk.
How to pay off the loan early?
Some friends may say that they did not think about it at the beginning, according to the maximum age of the loan, and now they regret it, do you want to pay early can?
Of course, early repayment of the loan is also possible, to a certain extent, you can save a large amount of interest expenses. The interest saved is "early repayment part x loan interest x remaining repayment period". Obviously, the earlier the repayment, the more money you can save.
However, companies need to clarify that early repayment of loans is essentially a breach of contract, and will generally require the payment of a certain amount of default fees, which we found on the Internet default fee data, you can develop as the main reference:.
Some friends summarize the law of early repayment in this way: generally 3-8 years after the purchase of repayment is more appropriate. But the specific need to look at the relevant provisions of the loan bank can refer to compare.
Finally, if you really feel that you do not have enough money to borrow, but want to reduce the cost of home loans as much as possible, then it is recommended or change the repayment method, you can consider "equal principal and interest" or "equal principal"; or consider finding a suitable interest rate Or consider replacing your mortgage bank with a bank that offers the right interest rate, but the cost is also quite high.
If it were you, how long would you choose to borrow for?
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