How many years is it cost-effective to buy a house mortgage?
If the purchaser mortgages 600,000 yuan from the bank and pays it off in 20 years, how much will it cost each month?
Commercial loan: 600,000 yuan with a term of 20 years. The latest benchmark interest rate is 5.9%, and the monthly payment is 4,264.04 yuan.
Provident fund loan: 600,000 yuan, with a term of 20 years. The latest benchmark interest rate is 4.00%, and the monthly payment is 3635.88 yuan.
Mixed loan: 600,000 yuan with a term of 20 years. According to the distribution of commercial loans and provident fund loans, the monthly payment is 3949.96 yuan.
1. Self-occupation type: If the house is for self-occupation and it is not planned to sell the house or replace the new house for a long time, this situation belongs to consumption, and the shorter the loan time, the better.
Remarks: If the house is occupied, it is planned to repay in advance within five years, and the longer the loan, the better. No matter how many years ago, most loans were repaid with interest and principal. The longer the loan time, the less the monthly repayment and the less interest paid. After paying off the principal within five years, you will find that you have reduced the interest expenses during this period.
2. Self-occupation: If the house is self-occupied, that is to say, it is likely to replace or sell the new house in the medium and long term, then the longer the loan period, the better.
Remarks: Buying a house is a big expense for ordinary families. Everyone should consider the balance between down payment and loan term.
How to calculate the mortgage
The calculation of bank loan interest depends on the different repayment methods of individual housing loans:
1. Monthly repayment of equal principal:
The average capital is characterized by sharing the principal evenly throughout the repayment period and calculating the interest on a daily basis according to the loan principal balance. The monthly repayment amount decreases gradually, but the repayment rate remains unchanged. This method is more suitable for borrowers who have strong repayment ability at the initial stage and want to return a large amount at the initial stage of repayment to reduce interest expenses.
2. Repayment of equal principal and interest on a monthly basis:
The characteristic of matching principal and interest is that the monthly repayment amount remains unchanged during the whole repayment period. Lenders can accurately grasp the monthly repayment amount and arrange family expenses in a planned way.
Remarks: It is more cost-effective to use average capital if you plan to repay in advance. If the funds are tight in the early stage or other funds are needed, it is recommended to choose the repayment method of "equal principal and interest";
If the income is relatively stable and nothing else is needed, it is recommended to choose the repayment method of "average capital". In addition, because the mortgage interest is a "one-year fixed" floating mode, considering the cost of the mortgage interest rate, if it is expected that the interest rate will gradually increase in the next few years, it is more favorable to choose the "even cost" repayment method.