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What should I do if the interest rate of housing loan is high? How to reduce the loan interest rate?
Nowadays, many people can only buy a house through loans, but buy a house through loans. The mortgage interest rate largely determines the amount of our house purchase. Then, what should I do if the interest rate of home loan is high? How to reduce the loan interest rate? Let's take a look!

How to reduce the loan interest rate?

1 Selection of loan banks

Find a bank with a lower interest rate. Although the benchmark loan interest rate is set by the central bank, banks can't adjust it independently, but the preferential interest rate is set by banks, and different banks are slightly different.

2 the choice of repayment methods

According to the average capital repayment, the common repayment methods are equal principal and interest repayment and equal principal repayment. These two different repayment methods generate different repayment interest, and the repayment interest in average capital is less. Therefore, the repayment method of average capital can also achieve the effect of reducing the loan cost.

3 shorten the loan period

Increase the down payment ratio and reduce the loan ratio. At present, the down payment ratio of most commercial banks is above 30%. However, if you want to save some housing costs, you'd better increase the down payment ratio and reduce the loan ratio. Reducing the expenditure of loan interest in this way can also achieve the effect of reducing the cost of buying a house.

4 advance payment

Prepayment is a very good method, which can help you shorten the loan period and reduce the total interest you need to pay. If you have extra cash, you can consider prepayment. When you prepay, you need to make sure that your bank will not charge you any extra fees.