How to choose the right loan term?
Borrowers should consider these aspects when choosing the loan term: their own economic ability, interest tolerance, investment ability and so on.
1, with its own economic capacity
When applying for a loan, the borrower should consider whether the corresponding monthly payment can be tolerated, and the bank should also evaluate the borrower's repayment ability to prevent its own risks.
When the monthly payment accounts for about 30% of the borrower's monthly income, it will not have much impact on the borrower's life; The bank requires the borrower to provide proof of income at the time of loan, and the monthly income should cover twice the monthly payment and other liabilities, which means that the borrower's monthly payment cannot exceed 50% of the borrower's monthly income.
2. Interest tolerance.
With the same loan method, amount and interest rate, the longer the loan term, the more total interest you need to pay.
3. Investment ability
The influence of the borrower's investment ability on the loan is mainly reflected in the difference between the investment rate of return and the loan interest rate. If the return on investment is higher than the loan interest rate in the same period, the borrower will choose a longer loan term, which will not lead to greater psychological imbalance because of the high total interest.
At the beginning of the loan, you can choose the loan term according to your actual situation at that time. In the later stage of the loan, if the economic situation improves, you can choose to repay in advance, shorten the loan period, and also achieve the effect of reducing the loan interest.
1. Maximum loan term of provident fund loan
According to the results of the following three calculation methods, the shortest loan term is the applicant's longest loan term.
1) calculated according to the age of the lender.
Ordinary housing provident fund center: 70- older spouse;
2) According to the age of the room:
Brick-concrete (mixed): 47 room age; Reinforced concrete (mixed): 57 room age.
3) The longest loan period is 30 years.
Note: When the borrower's monthly deposit reaches the upper limit, the maximum loan period will be shortened.
2. The longest loan term of commercial loans.
According to the results of the following three calculation methods, the shortest loan term is the applicant's longest loan term.
(1) Calculated according to the age of the lender.
65 (some banks can relax it to 70)-the age of the borrower.
(2) Calculated by room age
50 (different banking policies)-room age.
(3) Not more than 30 years.
Note: According to the regulations of Bank of Beijing, China Merchants Bank, China CITIC Bank, Bank of Communications, Bank of China, Minsheng Bank, China Construction Bank and Industrial and Commercial Bank, if a borrower purchases two houses, the longest loan period cannot exceed 25 years. Please consult the regional branch for details.
3. The longest loan term of portfolio loan.
When buying a house with a portfolio loan, the loanable years of provident fund loans and commercial loans need to be calculated separately, whichever is shorter.
Second, the longer the loan term, the better?
The longer the loan term, the less the monthly pressure and the more interest paid; The shorter the loan term, the greater the monthly pressure and the less interest paid.
For example: A applies for a commercial loan to buy the first house, and the loan period is up to 30 years according to its age and the age of the house purchased. If A borrows/kloc-0.0 million yuan and the interest rate is 4.9%, is it better to borrow for 30 years or 25 years?
Comparatively speaking, if A chooses to borrow for 30 years, the monthly payment pressure in 0 yuan will be reduced by 4,865,438+compared with 25 years, but the total interest will be 174 127 yuan. If the borrower borrows 2 million yuan, the difference between the monthly payment and the total interest will be even greater.
(The above answers were published on 20 17-02-2 1. Please refer to the actual situation for the current purchase policy. )
For more real estate information, policy interpretation and expert interpretation, click to view.