The loan term determines the monthly repayment amount. You should choose the repayment period according to your future income and expenditure. For loans with the same amount, choose the option that the ten-year repayment period exceeds twenty years, but the total amount needs to be paid off within twenty years. According to analysis, housing loans are generally suitable within 15 to 20 years.

How many years is it appropriate to choose a home loan?

Many people will have some small entanglements in the choice of mortgage life. The main reason is that they don't want to live a tight life now, and they don't want to bear so much interest pressure all the time. In fact, in the face of housing loans, there will be pressure, but there are big and small differences. You should choose the repayment period that suits you best according to your actual situation.

1. If the yield of funds (wealth management products such as stocks and bonds) exceeds the loan interest rate, the longer the term, the better.

Remarks: If the rate of return can exceed the loan interest rate, the longer the term, the slower the repayment of the principal, and the later the repayment, with equal principal and interest. For those whose yield is lower than the loan interest rate, the shorter the term, the better, and the earlier the repayment, the better. The yield here refers to the long-term average annualized rate of return.

2. Do what you can, and the shorter the loan period, the better.

Young people spend more and earn less, and the loan period can be slightly longer, so as to reduce the burden of monthly payment and relieve their repayment pressure. The money on hand can be used to enrich yourself or carry out higher-yield wealth management products.

Middle-aged and elderly people's income and expenditure are relatively stable, and their savings are sufficient. Repaying loans has little impact on their lives. Therefore, we can choose the repayment method in average capital or shorten the repayment period, and reduce the interest cost of mortgage by repaying as soon as possible.

What is the most cost-effective way to buy a house with a loan?

1. One-time repayment of principal and interest is actually aimed at some small short-term loans. This repayment method will be more strictly approved by the bank. This repayment method is simple to operate, but its applicability is not strong.

2. Not all banks have this repayment method of paying interest on schedule, which is suitable for people with unstable income. The repayment method of repaying principal and interest on schedule is adopted, and it is decided to repay at monthly, quarterly or annual intervals.

3. Matching principal and interest repayment method is suitable for borrowers with stable income. The repayment method of equal principal and interest is adopted, and the same amount is paid every month, which is convenient to operate, and it is also convenient to arrange income and expenditure by bearing the same amount every month.

4. The average capital repayment method has lower total interest expense. Average capital repayment method is adopted, and the borrower distributes the principal every month to pay off the interest from the previous trading day to the repayment date.