In terms of cost performance, more people will analyze and compare their interests; Higher total interest must be paid during 30 years, but considering the following three benefits, 30 years may not be cost-effective.

1. Less repayment pressure

Many people buy a house to get married, but they face a series of expenses after buying a house, such as getting married or letting their children buy a car, which is cheaper for a young couple or two families, thus shortening the longest loan period. In a tight economy, the pressure of monthly repayment may make newlyweds feel uneasy in the first few years.

2. More suitable for long-term advance payment

Usually, the bank will repay the interest first and then the principal, so the amount borrowed in advance cannot exceed one third of the loan term. You pay the most interest, so it is meaningless to repay in advance.

For example, if you get a loan of 3 million, you will pay it back every five years. If this is a 20-year loan, to repay nearly $65,438+0./kloc-0. 70 million, we must repay $268 million, which is almost $255 million. It is still 955,000 yuan or 2.762 billion yuan, totaling 377 1 10,000. The interest on a 30-year loan is only 30 thousand less than that on a 20-year loan, but you can see that the quality of life between you and your family is very different at this time.

You can buy a bigger house.

The loan period is long and the monthly payment is low. Do you want to borrow more money and buy a bigger house? As you know, you have a 20-year term and a monthly repayment of 2088 yuan. The difference between a three-month loan and a 30-year term is 1592 1.8, which is 2833.8 yuan, but the total difference is 1 ten thousand. For houses with a total price difference of 6,543,800 yuan, there is a big gap between them in terms of apartment type, location, area, supporting facilities and location.

In addition, the borrower must determine the loan method and term according to the family income and the actual situation. The premise of applying for housing loan is not to affect family life, and carefully consider the proportion of monthly income to family income. If the proportion is too high, it will inevitably reduce the cost of other families and affect normal family life.