Banks have restrictions on the age of lenders. 20-year-old young people and 50-year-old middle-aged people have different loan terms when buying a house. Therefore, when making a loan, buyers should consider their age when predicting the loan term. Generally speaking, the sum of the loan term and the lender's age shall not exceed 65 (or 70). Young people can often borrow for a longer time, while middle-aged people can buy a house and get a loan for a shorter time.
2. Pay attention to the nature of the property.
The nature of real estate is different, and the property rights of houses are also different. Generally speaking, for a house with 70-year property rights, the loan period is ≤30 years; For houses with 40-year property rights and 50-year property rights, the loan period is ≤ 10 year; For private property transfer houses and auction houses, the loan period is ≤20 years. When buying a house, be sure to ask about the nature of the property.
3. The economic strength of the lender
Banks will pay special attention to the financial strength of lenders when approving their loan applications. When granting a loan, the bank will examine the income of the lender to determine whether the monthly income of the lender is enough to repay the monthly mortgage payment. Therefore, it is difficult for people with unstable income and bad credit to borrow for 30 years.
Several mentalities of choosing loan term 1 and people with short loan term (15 years).
On the one hand, maybe I don't like the feeling of owing money to the bank. I would rather borrow money from others than pay more interest, but after I raised the money, I found that I still needed some money, so I had to borrow money. Besides, in order to pay less interest, I chose a shorter term. On the other hand, because of its good economic ability, it only borrowed for a short time in order to ensure its cash flow.
2. Choose a person with a long loan period (20 to 30 years)
On the one hand, due to our limited financial capacity, we can only choose a longer term, and then when we have more extra funds, we can reduce the pressure of monthly payment. On the other hand, because the house is a fixed asset, it has obvious advantages of long-term preservation in some hot cities, with long loan term and slow repayment. If conditions permit, it can also be rented out to support loans and reduce the pressure on mortgage loans.
Based on the above two kinds of mentality, the length of the loan period depends more on the economic ability and consumption habits of the buyers themselves.