There is a real case around me: a friend who is an e-commerce borrows 700,000 yuan to buy a house; I originally planned to borrow it for 30 years, but later I thought it was too long and wanted to borrow it for 20 years. A friend who works in a bank advised him to borrow 15 after learning about the situation for two reasons: First, the buyers have been doing well in business and their families are well-off, and they have to pay more every month. Second, the mortgage interest rate here is 6. 125%. If the loan term is 30 years, the total interest of 700,000 loans will reach 83 1 178 yuan, which is more than130,000 yuan higher than the loan amount. If the loan term is 20 years, the total loan interest is 5 15750 yuan; If the loan term is 15 years, the interest of the loan for 70 years is only 37 1787 yuan, which is only about half of the loan amount, which is nearly 500,000 yuan less than the interest of the loan for 30 years.

Choose average capital.

If the loan is still 700,000 yuan, the loan term is 30 years, and the interest rate is 6. 125%: if the repayment of principal and interest is equal, we can know from the previous data that the total interest of the mortgage is 83 1 178 yuan; If equal repayment of principal is chosen, the total interest is only 6449 1 1 yuan, which can save nearly 200,000 yuan.

"biweekly supply"

Everyone who buys a house knows "monthly payment", and it has long been a habit to repay the bank every month. I don't know that the bank also has a saying of "biweekly repayment", that is, it pays the bank a mortgage every two weeks, which improves the repayment frequency and correspondingly reduces the repayment interest. For example, the loan is 500,000 yuan, the loan term is 30 years, and the mortgage interest rate is 6. 125%: if the normal principal and interest are paid monthly, the total interest for 30 years is 593,698 yuan, and the monthly payment is 3,038 yuan; If "biweekly payment" is selected, the bank will be repaid every two weeks 15 18 yuan-it seems that the monthly payment to the bank is 3038 yuan. In fact, the high frequency of biweekly payment effectively reduces the mortgage interest, which is equivalent to indirectly shortening the repayment period-30 years is shortened to about 24.7 years, which can save 165438.

Convert to LPR interest rate

This method benefits from this year's mortgage interest rate reform-converting fixed interest rate into LPR interest rate. Although many people are still on the sidelines, they don't know whether it is appropriate to convert themselves into LPR interest rates; However, after consulting a number of bank-related people, we found that everyone suggested adopting LPR interest rate, because from the current policy trend, LPR interest rate is more cost-effective.