1, the monthly repayment pressure is small.
Many people buy a house for their own living, but after buying a house, they have to face a series of expenses such as getting married, having children and buying a car. This is a big expense for a young couple and even two families. The longest loan period can reduce the monthly repayment pressure.
For example, the same loan of 2 million yuan for 20 years, the equal principal and interest is nearly 1.3 1.06 million yuan per month, while the loan of 30 years, the monthly payment is only about 1.06 million yuan, so the monthly balance is nearly 0.25 million yuan more. It should be noted that the monthly payment should not exceed 50% of the monthly income, and it should be controlled within 30% if possible, otherwise the quality of life will be reduced.
2. The longer the loan term, the more suitable for prepayment.
Generally speaking, the bank pays the interest first and then the principal, so the prepayment should not exceed 1/3 of the loan term, because most of the interest has been repaid, and it is of little significance to repay the loan in advance.
For example, a loan of 3 million yuan will be paid off in one lump sum after five years:
If it is a loan for 20 years, nearly 1 178000 yuan has been repaid in five years, and nearly 2.509 million yuan has been repaid, totaling 3.687 million yuan.
If it is a loan for 30 years, it will be nearly 955,000 in five years, and it will be nearly 2.762 million, with a total repayment of 37 1.7 million.
It can be seen that the interest of a loan for 30 years is only 30 thousand more than that of a loan for 20 years, but the quality of life is different because of the reduction of monthly payment.
You can buy a bigger house.
The longer the loan period, the less the monthly payment, which means that you can borrow more money and buy a bigger house.
For example, for a loan of 2 million yuan, the service life is 20 years, and the monthly payment is 13088 yuan, while for a loan of 3 million yuan, the service life is 30 years, and the monthly payment is 1592 1.8 yuan. The difference between them is only 2833.8 yuan, but the total difference is 1 10,000 yuan. The house with a total price difference of 6,543,800 yuan+0,000 yuan has a big gap in terms of apartment type, location, area, facilities and location.
Of course, not everyone can borrow it for 30 years. On the one hand, it is limited by the age of the lender. On the other hand, because the bank will examine the borrower's income when issuing loans to determine whether the borrower's monthly income is enough to repay the monthly mortgage, it is difficult for people with unstable income and bad credit to borrow for 30 years.
Moreover, the borrower should determine the loan method and term according to his own income and actual situation, handle the mortgage on the premise of not affecting family life, and carefully consider the proportion of monthly payment to family income. If this ratio is too high, it will inevitably reduce other family expenses, thus affecting normal family life.
I hope my above answers can help you.