Declining repayments are equal principal payments. The principal amount repaid every month during the repayment period is fixed, while the interest is repaid in a decreasing form, so the total monthly repayment will show a decreasing state in the later period. For users, the equal principal repayment method can also effectively save interest, but this repayment method involves greater repayment pressure in the early stage.
The equal-increase repayment method means that the repayment amount of each installment in the later period of the loan period has a fixed reduction amount relative to the repayment amount of each installment in the previous period. During the same period of time, A repayment method in which the repayments in each installment are equal.
The equal-increase repayment method means that the repayment amount of each installment in the later period of the loan period has a fixed reduction amount relative to the repayment amount of each installment in the previous period. During the same period, A repayment method in which the repayments in each installment are equal.
Process:
1. Submit an application. The customer submits a written loan application to the bank and submits relevant information.
2. Sign the contract. After receiving the loan approval notice from the bank, the loan applicant must go to the lending bank to sign a loan contract and a guarantee contract, and handle notarization, mortgage registration, insurance and other related procedures as appropriate.
3. Open an account. Customers who choose the entrusted deduction method for repayment need to sign an entrusted deduction agreement with the bank and open a special savings passbook account or savings card or credit card account for repayment at the business outlet designated by the loan bank. At the same time, the house seller must open a house sales settlement account or a special deposit account with the lending bank.
4. Use the loan. For loans approved by the lending bank, after completing the relevant procedures, the lending bank will directly transfer the loan to the borrower's deposit account opened with the lending bank in accordance with the loan contract, or transfer the loan to the house seller in one go or in installments. In the deposit account opened by the lending bank.
5. Repay the loan on schedule. The borrower repays the principal and interest of the loan according to the repayment plan and repayment method stipulated in the loan contract. Currently, the available repayment methods are entrusted deduction and over-the-counter repayment.
Equated decreasing repayment method (decreasing by 100 every 2 years), with a loan of 500,000 yuan, with a term of 20 years, and the interest rate is 6.273%, which is 15% lower than the current standard mortgage interest rate of 7.38% announced by the People's Bank of China. For example, the first month’s repayment is 4010.74 yuan.
Equated decreasing repayment method (decrease by 100 every 3 years), taking a loan of 500,000 and repayment for 30 years as an example, the interest rate will be 6.273% after being reduced by 15% from the current mortgage interest rate of 7.38% announced by the People's Bank of China. Calculated, the total interest paid is 558,288.4 yuan.
Generally, the down payment is 20% for a first-hand house and 30% for a second-hand house. The minimum down payment for a second home is 40%, and the loan interest rate is equivalent to 1.1 times the benchmark interest rate.
The maximum term for personal first-hand housing is 30 years, and the maximum term for personal second-hand housing loans is no more than 20 years.
The customer voluntarily chooses to insure with an insurance company, and the bank does not charge insurance premiums; the bank does not charge customers legal fees.