Many people always have two extremes when borrowing money. One is to borrow as much as they can, and the other is to borrow as little as possible. From a practical point of view, both of these approaches are actually undesirable and irrational. The most reasonable method is to consider how much you want to borrow based on your own assets and family situation, and make a rough assessment of your assets and credit situation before taking out a loan.

How much is the appropriate mortgage loan amount for a bank? The most reasonable method is to consider how much you want to borrow based on your own assets and family situation, and make a rough assessment of your assets and credit situation before taking out a loan.

If our assets are in good condition and we have large deposits in the bank, but there are no other investment and higher income channels, then we will choose to borrow less, and our interest will be less. Another situation is that if all the funds we have are invested in funds, futures and other financial products and the rate of return is higher than the interest we pay, then we will choose to borrow more.

Mortgage monthly payment: depends on income

For most young people, because they have entered the society for a short time, their capital accumulation is often limited, and their expenses such as decoration and wedding preparations after buying a house are relatively large. At this time, buying a house often requires the help of family elders. Therefore, when buying a house, you should make a special budget for buying a house and buy a property within your financial affordability. Nowadays, many developers usually offer large discounts for one-time payments. If financial conditions permit, one-time payment is definitely the best option. If you don't have that much financial ability, you have to choose a mortgage loan to buy a house.

When taking a loan to buy a house, you must first consider the total house price you can afford. Generally speaking, the down payment of a house will not be less than 20% of the total price. Therefore, when choosing a house, new people should consider the total price of the house they can afford, the down payment amount, and the monthly loan repayment amount. Under normal circumstances, it is best for newlyweds to control their monthly loan repayments within 50% of their total household income, so that their daily lives can be basically unaffected.

In addition, there are many repayment methods for commercial loans. If your income is relatively stable, you can choose the repayment method of equal principal and interest. The monthly repayments are equal, which makes it easier to arrange capital expenditures, but the disadvantage is that the total interest expenditure is the highest among all repayment methods.

If you have relatively ample money, you can consider choosing a loan repayment method with equal principal amounts. Although the initial monthly payment of this loan repayment method is relatively high and the repayment pressure is high, compared with equal principal and interest, it can save a lot of interest expenses, and the monthly payment will gradually decrease in the later period, which is conducive to the arrangement of other investment and financial planning.

If your monthly income is high and stable, you can consider biweekly loan repayment. The biweekly interest payment is less than the same amount of principal and interest, and the loan repayment amount is stable, which will not cause the problem of high monthly payment pressure in the early stage. From the perspective of the difference between biweekly payment and equal amounts of principal and interest, taking the same loan amount as an example, the longer the term of the house purchase loan, the greater the difference between the interest and interest, and biweekly payment is more appropriate. However, there will be cases where the loan is repaid three times in certain months every year, which will increase the repayment pressure at a certain stage to a certain extent.

Repay the loan early: look at the funds

Bank professionals remind you not to buy a house beyond your ability. If the monthly loan repayment is too high, it will be very difficult in the event of an emergency. Difficult to deal with turnaround. People who are about to get married should try their best to choose a type of house purchase loan with a longer term based on their own circumstances. On the one hand, they can relieve their own loan repayment pressure and ensure the quality of life after marriage; on the other hand, if their career develops smoothly, they can also repay the loan in advance.

The problem of early loan repayment is also a problem that is often encountered. The reasons are nothing more than fluctuations in bank interest rates and changes in income. Many young people start buying houses in the early stages of their careers. Due to their weak financial strength and low repayment ability, the mortgage terms they apply for are generally relatively long. Later, as income increases and bank interest rates rise, many people will plan to repay their loans early. But you need to carefully consider whether it is cost-effective. Therefore, for these friends, when taking out a loan to purchase a wedding house, they should take the factor of early repayment into consideration.

Many banks have early loan repayment services. Mortgage loans generally adopt the "personal housing portfolio loan" method, which consists of two parts: a housing provident fund loan and a housing commercial loan. If the home buyer chooses this type of loan, it will be much more "favorable" to repay the commercial loan first.

Since housing provident fund loans contain policy subsidies, the loan interest rates are much lower than commercial loans. Therefore, it is relatively cost-effective for home buyers to repay commercial loans with higher loan interest rates in advance.

Each bank's early loan repayment is roughly divided into two categories: full early repayment and partial early repayment. The all-early repayment method is the most interest-saving method and the simplest procedure. However, borrowers who choose this method must also act within their capabilities and cannot disrupt other funding plans in order to pay off all bank debts in advance.

After repaying the loan: cancel the mortgage

Don’t think that repaying the loan can be regarded as completely completing the mission. After repaying the loan, you must also remember to cancel the mortgage. Because many lenders are indifferent to mortgage rights, they often forget to go to the property rights department to cancel the mortgage after repaying in advance. In this way, although the loan is paid off, the house is still registered with the property rights department, which will bring unnecessary trouble to future housing transactions. trouble. When canceling the mortgage, the borrower needs to apply for a returned mortgage certificate from the bank, go to the housing mortgage property department to get a cancellation registration form (be careful not to apply across districts), and finally attach the house purchase contract or property rights certificate to cancel the mortgage.

The above is the relevant knowledge about how much loan you should borrow to buy a house.

(The above answer was published on 2015-11-15, please refer to the actual current relevant home purchase policies)

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