The United States is a developed country, and many people want to immigrate to the United States. So how can the United States borrow money to buy a house and repay the loan? I am here to sort out the introduction of American loans to buy a house and repay the loan, hoping to help you.

1. Repay the loan principal in advance or in one lump sum.

For property buyers, the repayment of the principal in advance when sharing the repayment, the monthly cost remains unchanged, but it can help shorten the contribution period. Since most loans mainly pay interest at the beginning, the earlier the principal is paid, the less interest will be paid later.

For example, if you pay an extra month's monthly fee every year, this extra monthly fee will help you pay off your mortgage faster.

Based on a mortgage loan of $500,000, the 30-year mortgage interest rate is 4.53% and the monthly payment is $2,542. If you pay one more month at the beginning of each year, you can shorten the contribution period from 30 years to 26 years, because shortening the contribution period by four years can save interest of $67,582.

Second, refinancing.

If you refinance a long-term loan into a shorter loan, for example, if you refinance a 30-year mortgage to 15, the interest rate of the 15 loan is usually lower than that of the 30-year loan. The shorter the loan term, the shorter the time to pay off the loan, but at the same time, the shorter the loan term, the higher the monthly payment.

For example, a loan with a 30-year interest rate of 6% and the remaining 25 years was refinanced in 2005 to a loan with an interest rate of 65438+3.5%. The initial loan amount was USD 350,000, and we refinanced the remaining USD 3,365,438+USD 0,500. The original loan amount was USD 350,000, and the monthly payment was USD 2,098.44 at the interest rate of 6% for 30 years. The remaining 25 years (300 months) = 2098.44 x300 USD = 629532 USD (principal plus interest for 25 years).

After refinancing, the amount is $3,365,438+0,500, the interest rate is 3.25%, the term is 65,438+05, and the monthly payment is $2,329.36,65,438+05 (65,438+080 months) = $2. In this example, if we refinance the 30-year loan to 15, we will save 2 10/0,247.20 USD in interest expense.

However, it is worth noting that for saving interest expenses, repaying the principal in advance and refinancing are both good methods, but both need to be selected according to personal financial situation.