In daily life, many people are familiar with the word loan. Nowadays, most young people will choose to buy a house or a car through a loan. Especially in the process of buying a house, sometimes even paying the down payment requires emptying a family's wallet, let alone buying the house in full. Therefore, the most common type of loan for banks is a mortgage. It is precisely because of the existence of housing loans that we can move into our new home in advance through a loan, and then proceed with the slow repayment process. High loan interest rates

Many people have discovered in the process of not getting a loan that the interest rates of home loans are actually very high. Sometimes the interest repayment is even higher than the price of the entire house when considering the total interest. Much higher. In fact, such a situation often occurs during the process of buying a house with a loan. This is also a relatively common situation and everyone's default situation. The reason why such loan interest rates are relatively high is also due to various reasons. Long loan period

The reason why many people think that the interest rates of other loans are not high is because the loan period is relatively short, usually only about 1 to 5 years. But you should know that for home loans, the loan period can even reach 30 years. It is precisely because the average loan and repayment period is 30 years, so the interest rate and the interest paid are relatively high. And if you choose a shorter term for loan and repayment, the interest paid will not be that high. Therefore, the interest rate on loans is very high because banks can issue loans up to 30 years, and the interest rates are also considered by banks. Inflation problem

The longer the term of the loan, the more interest will be paid. This is a thing that everyone agrees on. The reason for this phenomenon is that in addition to being used for In addition to the long term of the loan, it is also closely related to inflation. Banks must take into account not only the current loan interest rate and interest, but also the next 10, 20, 30 years. For example, 20 years ago, the per capita salary in Beijing was still around 1,900 yuan. If we only consider interest rates and interests based on that era, banks would be at a huge disadvantage given today's income levels.

So banks must take into account not only the current economic income, but also future inflation, so the interest rates and interests on their loans are generally relatively high. But such a high interest rate or high interest rate also solves the housing problem in our lives, allowing us to move in early without paying the full payment.