1. Increase the down payment ratio
If you have enough savings, you can consider increasing the down payment ratio. A higher down payment ratio helps to reduce the loan amount and interest expenses. Pay more if you can pay more down payment. The current financial interest rate is really too low. You can't find any low-risk financial products above 4 percentage points (the stock market is not within my consideration), so if you have limited financial ability like me, you might as well use the money to pay the down payment to maximize the income of the money.
Although you can buy a house with a down payment of 30%, Ahu took into account the pressure of mortgage when buying a house, so he made a down payment of 50% with his parents and applied for a loan. In this way, the monthly payment can be reduced by 2k, and the repayment pressure is much less. However, Ah Hu doesn't recommend a down payment loan. He must use his own savings, otherwise he won't move again soon.
2. Observe the interest rate trend:
It is wise to pay attention to the trend of market interest rates. If you think the market interest rate has a downward trend, you can consider waiting for the right time before applying for a loan. This can benefit from the lower interest rate during the loan period. Now that the interest rate is going down, if it is not particularly urgent-if you don't buy a house, you have to sleep on the street, you can wait a little longer. Even if the interest rate is lowered by 0. 1%, it will become several w's superimposed on the mortgage after 20 years.
Another trick is that you can choose the interest rate on the signing date or the interest rate on the lending date when making a loan. In view of the current situation that interest rates are falling again and again, you must choose the interest rate on the loan date for settlement. Maybe the loan date will be delayed for several months to catch up with a wave of interest rate cuts.
3. Advance payment? vs？ investment
When some deposits are in hand, many people will consider prepayment. Ah Hu suggested that the mortgage interest rate and other investment returns should be comprehensively considered before deciding whether to repay in advance. If the mortgage interest rate is low and you have other investment channels with higher yield, it may be more cost-effective to invest idle funds than to repay the loan in advance.
It is cost-effective to prepay commercial loans, but it is best not to prepay provident fund loans, because the interest rate of provident fund loans is really low and the provident fund can cover most loans, so it is not necessary to prepay provident fund loans. Specifically, if the interest rate of buying a house at a high level is 6%, but now you can apply for a 30w commercial loan with an interest rate of 4.5%, then you can apply for a 30w loan, and then use it to repay the mortgage, and then repay the commercial loan at an interest rate of 4.5, which reduces the interest rate of 1.5% out of thin air, and the 30w loan can at least repay 5w!
4. Regularly adjust the repayment method:
Some loan products allow adjustment of repayment methods under certain conditions, for example, from equal principal and interest to average capital. The interest expense of repayment method in average capital is higher at the beginning of repayment, but with the passage of time, the monthly repayment amount will decrease, and the total interest expense will also decrease accordingly. Because of the flowing water, Ah Hu's loan is equal principal and interest, and he is going to change it to equal principal and interest in the near future. After all, the interest is his own money, so if you can pay less, you will save a little. Each bank's repayment policy is different, and the specific repayment rules should be consulted with the bank that lends itself.