Whether it is better to buy a house with a loan term of 20 years or 30 years, there is actually no precise answer. The decision can be made based on family income, monthly payment affordability, age of the borrower, income, etc.

1. Make a choice based on family income

That is, after deducting expenses from the monthly family income, the necessary reserve funds should be left (such as those who plan to buy a car, and those who have medical expenses). , travel, human etiquette). Next, look at how much you can use for financial management every month. If you can't find a financial management project with a higher expected value than 4.11%, then all the money can be used to repay the loan, and you can choose the term based on this direction. .

In addition, for example, if you trade in stock futures, although it is unstable, the overall expected value is above 4.11%. In this case, it is recommended that you choose a loan with a longer term, the better. Because you can definitely beat the bank loan interest rate.

2. Make a choice based on the monthly payment

Generally speaking, the bank’s requirement is that the monthly payment should not exceed 50% of the monthly income! Of course, if possible, as a loan We still try to control it within 30%, otherwise it will reduce the quality of life. Therefore, if you want to have less monthly payment pressure, you can choose 30 years; if you are financially wealthy and can withstand the monthly payment pressure, you can choose 20 years.

3. Make a selection based on the age of the borrower

I believe anyone with experience in housing loans knows that banks have restrictions on the age of borrowers. In other words, the age of the borrower will affect the loan term, because generally speaking, banks will not agree to grant a 30-year loan to those over 40 years old.

4. Make a choice based on whether you have the intention of "early repayment"

Generally speaking, commercial loans have early repayment business. That is, from the date of successful loan application, after 12 months of on-time repayment, you can apply for early repayment. You can apply twice a year, each time being an integer multiple of 20,000 (there may be slight differences between banks).

Attention! The money repaid in advance does not accrue interest. After the repayment, the remaining money will accrue interest again. Therefore, the editor suggests that when the economic conditions are poor, you can choose a 30-year loan first. Later, when the economic conditions improve and you have saved more than 100,000, you can choose to repay the loan in advance.