If the income is relatively high, the monthly repayment will not affect the life at all, and it is more cost-effective to choose a way with short loan time and less interest; However, if the income is relatively average, or the household expenses are relatively large, if the loan period for buying a house is short, the pressure of monthly repayment will be too great, so it will be better if the loan time is longer, although more interest will be paid.
2. At present, there are two repayment methods for individual housing loans: the equal principal and interest method and the average capital method. The main differences are as follows:
The feature of equal principal and interest method is that the monthly repayment amount is the same. In the distribution ratio of "principal and interest" in monthly payment, the interest paid in the first half of the year is larger, but the principal is smaller. After more than half of the repayment period, it gradually turns into a large proportion of principal and a small proportion of interest. The total interest paid is more than the interest paid by the average capital method. The longer the loan term, the greater the interest difference. However, because the repayment amount is the same every month, it is suitable for family expenditure plans, especially for young people, and the principal and interest method can be adopted, because income will increase with age or promotion.