In order to settle down in a city, many people will use commercial loans to buy a house of their own. When applying for a commercial loan, you will usually sign a commercial loan contract, which will also indicate the loan period. Due to the improvement of their financial ability, many people want to change the term of commercial loans. So, can the term of commercial loans be changed? Let's learn about it with the editor. By the way, let's talk about the term and age of commercial loans and whether it is better to have a longer term or a shorter term.

1. Can the term of a commercial loan be changed?

1. Can the term of a commercial loan be changed? Under normal circumstances, the commercial loan period is determined before the loan is granted. Once the loan period is determined, the loan period cannot be changed midway. However, you can repay the loan in advance, that is, pay off all the money in advance before the loan period expires.

2. For those with financial ability, the borrower can apply for early repayment and shorten the term, thus achieving the purpose of changing the term of the housing loan. However, it depends on how the loan contract stipulates, whether there are liquidated damages, whether early repayment of the loan is required, etc. Under normal circumstances, these issues will be stipulated in the contract.

3. In addition, changes in loan interest rates will also affect the loan term. The loan interest rate is not a fixed value, but the loan interest rate will directly affect the mortgage term.

4. Shortening the commercial loan period can relatively save interest, but not all banks can apply to shorten the loan period and repay it early, because some banks currently require that if you repay in advance, you can only reduce the monthly payment. The repayment amount and loan term remain unchanged.

2. Commercial loan term and age

1. Commercial loan term

Under normal circumstances, the long loan term of personal housing loans from commercial banks is 30 years. If the borrower purchases a house, the loan term shall not exceed 30 years; if the borrower purchases commercial housing and "commercial and residential housing", the loan period shall not exceed 10 years; the term of each loan shall be determined by the commercial bank based on the age of the borrower. , working years, repayment ability and other factors are determined through negotiation with the borrower. However, the age of the borrower plus the length of the loan shall not exceed 70 years.

2. Commercial loan term and age

The specific loan term is calculated based on the individual’s age. Generally, men are no more than 65 years old and women are no more than 60 years old. And the loan terms of each bank are different. The long-term period for new houses is 30 years, and the long-term period for second-hand houses is 15 years.

3. Is it better to have a longer commercial loan term or a shorter one?

1. Is it better to have a longer commercial loan term or a shorter term? There are advantages and disadvantages to the length of a commercial loan, and you still have to look at it based on your own abilities when choosing one. If the monthly interest rate that can be generated by using your salary or other income to finance is higher than the interest rate of the mortgage, it is recommended that the loan period be longer. The longer the period, the more you can get, which is cost-effective for the individual.

2. If the interest rate generated by using your salary or other income for financial management every month is lower than the mortgage interest rate, it is recommended to repay the loan as early as possible. At this time, the interest expense will be small, which is also beneficial. Buy as much loan as you can, and the extra money can be invested in another one. However, there are risks, so you should be cautious when entering the market. Try not to borrow money just when you need it. If you owe less debt, you can live a more secure life.

The above is about whether the commercial loan period can be changed, the commercial loan period and age, and whether the commercial loan period is longer or shorter. I hope it can be helpful to everyone!