Different repayment methods after applying for a mortgage
1. The phased repayment method is suitable for young people. Because young people and college students have just joined the work and are short of funds, this repayment method allows customers to have a grace period of 3-5 years, and it only takes a few hundred yuan a month to start repayment. After 5 years, with the increase of income and the consolidation of economic foundation, repayment will also increase into the normal repayment method.
2. average capital repayment method is suitable for people with high income. With equal principal repayment, the borrower can gradually reduce the burden with the increase of repayment year. This repayment method is to allocate the principal to each month, and at the same time pay off the interest between the previous repayment date and the current repayment date. Under the same conditions, the total interest paid by this repayment method is less than the equal principal and interest, and the repayment burden will be gradually reduced as time goes by. However, because the interest is decreasing, the monthly payment in the first few years will be higher than the equal principal and interest, and the pressure will be great, so this repayment method is more suitable for people with high income and little repayment pressure.
3. Matching principal and interest repayment method is suitable for people with stable income. Matching principal and interest means adding the total principal and interest of the mortgage loan, and then sharing it evenly in each month of the repayment period. As a repayment person, he pays a fixed amount to the bank every month, but the proportion of principal in the monthly repayment amount increases month by month and the proportion of interest decreases month by month. It can be seen that families with stable income and economic conditions do not allow excessive investment in the early stage can choose this method.
4. The method of paying interest quarterly and monthly is suitable for people engaged in business activities. One-time repayment of principal and interest refers to the repayment method of repaying all loan interest and principal at one time on the maturity date of the loan. For small enterprises or individual operators, the repayment pressure can be reduced.
5. Re-mortgage. Re-mortgage means that the new lending bank helps customers find a guarantee company, pays off the money of the original lending bank, and then re-applies for loans at the new lending bank. If your current bank can't give you a 3% discount on mortgage interest rate, you can completely change jobs and find the most affordable bank. Because of the fierce competition, some banks are quite willing to help you.
6. Adjust interest rate monthly. Under the current trend of interest rate cuts, if the citizens used to choose a fixed mortgage interest rate, it would be cost-effective to quickly switch to a floating interest rate. However, changing from "fixed" to "floating" requires a certain amount of liquidated damages.
7. Save interest on biweekly basis. Biweekly repayment shortens the repayment period, which is higher than the original monthly repayment frequency. As a result, the principal of the loan decreases faster, which means that the loan interest returned during the whole repayment period will be far less than the loan interest returned during the monthly repayment, and the principal decreases faster. Therefore, the repayment period is shortened, and the total expenditure of the borrower is also saved. For people with stable work and income, it is still appropriate to choose biweekly payment.
8. Repay the loan in advance to shorten the term. Settle the accounts before repaying the loan in advance, because not all prepayment can save money. For example, the repayment period has exceeded half, and the principal in the monthly repayment amount is greater than the interest, so the significance of early repayment is not great. In addition, after some loans are repaid in advance, the remaining borrowers should choose to shorten the loan period instead of reducing the monthly repayment amount. Because the interest charged by banks is mainly calculated according to the time cost occupied by the loan amount, shortening the loan period can effectively reduce the interest expenditure. If the loan term is shortened, it can be classified into the term grade with lower interest rate, and the effect of saving interest will be more obvious. Moreover, in the process of interest rate reduction, the interest rate of short-term loans often falls even more.
9. Transfer the provident fund to repay the loan. When applying for a portfolio loan for house purchase, on the one hand, we should make full use of provident fund loans and extend the loan life as much as possible, while enjoying the benefits of low interest rates, we should minimize the repayment amount of monthly provident fund; Minimize the life of commercial loans and increase the monthly repayment amount of commercial loans as much as possible within the family's economic affordability. In this way, the structure of monthly repayment will show a state of less share of provident fund and more share of business. After the provident fund account is used to offset the monthly payment of the provident fund, the balance can be used to offset the commercial loan, thus saving considerable interest.