If only from the perspective of saving interest, shortening the loan period is definitely the most cost-effective. Choosing which way to save money is actually very simple, as long as you master a rule, that is, "the more principal you have to pay, the more interest you will save." If the customer chooses to shorten the loan term and the monthly payment remains the same, the repayment cycle of the customer will be accelerated because the monthly repayment amount of the customer has not changed.

Personal housing loan is a kind of consumer loan, which refers to the loan issued by the lender to the borrower for the purchase of ordinary housing for personal use. When a lender issues a personal housing loan, the borrower must provide a guarantee. If the borrower fails to repay the principal and interest of the loan at maturity, the lender has the right to dispose of its collateral or pledge according to law, or the guarantor shall be jointly and severally liable for repaying the principal and interest.

The loan object is a natural person with full capacity for civil conduct. The loan conditions are: urban residents are used to buy ordinary houses for their own use, have a house purchase contract or agreement, have the ability to repay the principal and interest, have good credit, have a down payment of 30% of the funds needed for house purchase, and have a loan guarantee recognized by the bank.

Personal housing loans are limited to the purchase of self-occupied ordinary housing and urban residents' self-occupied housing, and may not be used to purchase luxury housing.

Interest rate policy

The loan interest rate is subject to the relevant interest rate policies of the People's Bank of China and China Banking Regulatory Commission.

2065438+On August 25th, 2009, the People's Bank of China announced that the interest rate of individual housing loan is an integral part of the loan interest rate system. In the process of reforming and perfecting the formation mechanism of LPR housing loans, the pricing benchmark of individual housing loans also needs to change from the benchmark interest rate of loans to LPR in order to give full play to the market role.

At the same time, the personal housing loan interest rate is also an important part of the long-term management mechanism of the real estate market and the regional differentiated housing credit policy. In order to implement the positioning of "the house is for living, not for speculation" and the long-term management mechanism of the real estate market, ensure the smooth and orderly conversion of the pricing benchmark, keep the interest rate of individual housing loans basically stable, and safeguard the legitimate rights and interests of both borrowers and lenders.

After the conversion of the pricing benchmark, the interest rate of the first set of new individual housing loans in China shall not be lower than the LPR of the same period (according to the LPR of more than 5 years on August 20, 4.85%); The interest rate of two sets of personal housing loans shall not be lower than the LPR plus 60 basis points in the same period (calculated by LPR of 5.45% for five years or more on August 20).

The quoted interest rate in the loan market has two maturities: 0-year and 5-year or longer. Personal housing loan interest rate 1 year and 5 years or more have a direct corresponding benchmark. The personal housing loan interest rate with the benchmark of 1 year and 1 year to 5 years can be independently selected by the lending bank between the two term varieties. After the reference benchmark is determined, the added value can be adjusted to reflect the term spread coefficient.