The so-called "long loan and short repayment" means applying for a longer loan period and paying it off in a short time. Generally speaking, the loan term is 20-30 years, and it will be paid off in one lump sum in about 5 years. This can save some interest expenses. Long-term mortgage and short-term loan can also save some interest expenses, but they are not suitable for all property buyers. It is understood that long-term loans and short-term loans are also suitable for a class of property buyers, that is, they intend to pay off the loans in one lump sum in advance. In addition, long-term loans and short-term loans also have to pay liquidated damages, and they are not low. Buyers pay off their mortgages in advance at one time, which will cause certain losses to banks. The purpose of collecting liquidated damages is to reduce losses.

I. Repayment method:

(1) Equal principal and interest repayment method: equal repayment every month, the sum of loan principal and interest. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same;

(2) average capital repayment method: that is, the borrower distributes the loan amount to each period (month) evenly throughout the repayment period and pays off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month;

(3) Paying interest and principal on a monthly basis: that is, the borrower repays the loan principal in one lump sum on the loan maturity date (applicable to loans with a term of less than one year (including one year)), and the loan bears interest on a daily basis and the interest is repaid on a monthly basis;

(4) Repay part of the loan in advance: that is, the borrower can repay part of the loan amount in advance when applying to the bank, which is generally an integer multiple of 65,438+0,000 or 65,438+0,000. After repayment, the lending bank will issue a new repayment plan, and the repayment amount and repayment period will change, but the repayment method will remain unchanged, and the new repayment period shall not exceed the original loan period.

(5) prepayment of all loans: that is, the borrower can repay all the loan amount in advance when applying to the bank, and the loan bank will terminate the borrower's loan at this time after repayment and handle the corresponding cancellation procedures.

(6) Pay back as you borrow: interest is calculated on a daily basis after borrowing, and interest is calculated on a daily basis. You can pay the money in one lump sum at any time without any penalty.

Second, how to get the lowest bank loan interest rate

First, choose the bank with the lowest interest rate to apply for a loan.

Although the central bank has introduced the benchmark interest rate, the interest rates of all banks will rise above the benchmark interest rate, and the specific floating situation is different from bank to bank. Therefore, in order to get the lowest bank loan interest rate, we must "shop around" and then choose the bank with the lowest interest rate.

Second, pay attention to personal credit reporting and maintain good credit reporting.

Bank loan interest rates are all calculated by computers based on personal credit information, income, work and other information. In other cases, you can only keep your credit information and try to repay your credit card on time to avoid overdue.