Why does the loan take 30 years?
1, the monthly repayment pressure is small: many people buy houses to get married, but after buying a house, they have to face a series of expenses such as getting married, having children and buying a car, which is a big expense for a young couple and even two families. The longest possible loan period can reduce the monthly repayment pressure and relax both husband and wife.
For example, the same loan of 2 million yuan with a loan term of 20 years, the matching principal and interest is still close to 1.3 1.06 million yuan per month. If the loan term is 30 years, it is only close to 1.06 million yuan per month, so the monthly balance can be used for living expenses.
However, 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 is, the more suitable it is for prepayment: Generally speaking, the bank repays the interest first and then the principal, so prepayment should not exceed 1/3 of the loan term, because you have already repaid most of the interest, so prepayment is meaningless.
Should everyone borrow it for 30 years?
The answer is naturally "not necessarily", because banks will examine the borrower's income when issuing loans to determine whether the borrower's monthly income is enough to repay the monthly mortgage, so 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.