A 20-year mortgage is the best deal.

Generally speaking, the longer the loan term, the less the monthly repayment amount; The shorter the loan period, the higher the monthly repayment amount. If the income of buyers is relatively stable and high, it is suitable to choose short-term loans.

The shorter the time, the less interest, which can save a lot of mortgage interest for high-income people who just want to temporarily turn around. People with unstable income or low income need to consider their own income, so it will be more cost-effective to prolong their life.

Matters needing attention in applying for mortgage

1, apply for a mortgage and do what you can. Some people think that the bigger the loan amount, the better, but it is not! Because you have to pay the mortgage and interest. If your loan term is longer and the loan amount is larger, you will have to pay more loan interest and increase your repayment pressure.

2. Choose the appropriate repayment method. There are two common ways of mortgage repayment: equal principal and interest repayment and equal principal repayment. Among them, the latter is more economical than the former, but the pressure of prepayment is greater, and borrowers can make reasonable choices according to their own income.

3. Prepare loan information in advance. Before applying for a mortgage, the borrower should consult the bank about the procedures required for the loan, so as to make preparations in advance and save the time for loan approval.

How many years is mortgage loan cost-effective?

This problem can not be generalized, but should be discussed according to the different income of buyers and their own economic situation. If the lender's income is stable and relatively high, it is suitable to choose short-term loans. The shorter the time, the less interest.

For people whose high income is only for temporary turnover, this can save a lot of mortgage interest. For people with unstable income or low income, it is more cost-effective to lengthen the life span considering their own income problems.

For the specific situation, we will try to calculate the loan amount of 300,000 yuan, the benchmark interest rate of the loan (6.55%), and repay the principal and interest in equal amount. If the borrower chooses to pay off in 20 years, it needs to repay 2245.56 yuan per month, with total interest of 2344.8+08 yuan; If you choose 10 to pay off, you need to pay back 34 14.08 yuan per month, and the total interest is 109689. 16 yuan.

According to the above calculation results, we can see that the mortgage with a term of 10 is less than the mortgage with a term of 20 years 1 168.52 yuan per month, and the total interest is less 129245.02 yuan. In other words, the longer the loan term, the lower the monthly payment, but the higher the total interest expense;

The shorter the loan term, the higher the monthly payment and the lower the total interest expense. Therefore, it is cost-effective to buy a house loan for many years. For high-income people, the shorter the better; For low-income people, extending the repayment time is conducive to ensuring the quality of life.

Extended data:

First, housing provident fund loans to buy a house:

For residents who have participated in the housing provident fund deposit, loans to buy a house and low-interest loans for housing provident fund should be the first choice. Housing provident fund loans have the nature of policy subsidies, and the loan interest rate is very low, which is not only lower than the loan interest rate of commercial banks (only half of the mortgage interest rate of commercial banks), but also lower than the deposit interest rate of commercial banks in the same period.

In other words, there is a spread between the mortgage interest rate of the housing provident fund and the bank deposit interest rate. At the same time, when handling mortgage and insurance related procedures, the housing provident fund loan will be halved.

Second, individual housing commercial loans to buy a house:

The above two loan methods are limited to employees who pay housing provident fund, and there are many restrictions. Therefore, people who have not paid the housing provident fund have no chance to apply for loans, but they can apply for personal housing secured loans from commercial banks, that is, bank mortgage loans.

As long as your balance in the loan bank accounts for not less than 30% of the funds needed for house purchase, and it is used as the down payment, and the assets recognized by the loan bank are used as collateral or pledge, or the units or individuals with sufficient compensation ability are used as guarantors to repay the loan principal and interest and bear joint liability, then you can apply for using the bank mortgage loan to buy a house.

Third, individual housing portfolio loans to buy a house:

The maximum amount of provident fund loans that can be issued by the housing provident fund management center is generally1-290,000 yuan. If the purchase price exceeds this limit, the insufficient part shall apply to the bank for commercial housing loans. These two kinds of loans are collectively called portfolio loans.

This business can be handled by the real estate credit department of the bank. The interest rate of portfolio loans is moderate, and the loan amount is large, which is mostly used by loan buyers.

Personally, it is best not to borrow for more than 20 years under any circumstances, and some families even borrow for 30 years. It seems that under pressure, they actually pay too much interest, and they will always care about their loans mentally, and their quality of life may even decline.