How much is the loan?
If our assets are in good condition and the bank has a lot of deposits, but there are no other investment channels and higher returns, then we will choose to borrow less, so our interest will be less. Another situation is that if all the funds in our hands are invested in financial products such as funds and futures, and the yield is higher than the interest we pay, then we choose to borrow more.
Monthly mortgage payment: look at income
For most young people, due to the short time to enter the society, the accumulation of funds is often limited, and the expenses of decoration and wedding planning after buying a house are relatively large. Buying a house at this time often requires the help of the elders at home. Therefore, when buying a house, we should make a special budget for buying a house and buy a house within an affordable range. At present, many developers usually offer large discounts for one-time payment. If economic conditions permit, one-time payment is definitely the best choice. If you don't have such a big economic affordability, you should choose a mortgage loan to buy a house.
Buying a house with a loan must first consider the total house price that you can afford. Generally speaking, the down payment of a house will not be less than 20% of the total price, so when choosing a house, new people should consider the total price, down payment and monthly repayment they can afford. Under normal circumstances, it is best to control the monthly repayment amount of newcomers within 50% of the total family income, so as to basically ensure that daily life is basically unaffected.
In addition, there are many repayment methods for commercial loans. If the income is relatively stable, you can choose the repayment method of equal principal and interest. The monthly repayment amount is equal, which is convenient for arranging capital expenditure, but the disadvantage is that the total interest expenditure is the highest among all repayment methods.
If you are well-off, you can consider choosing the repayment method in average capital. Although this repayment method has a high monthly payment in the initial stage and a great repayment pressure, it can save a lot of interest expenses compared with the equal principal and interest, and the monthly payment will gradually decrease in the later stage, which is conducive to arranging other investment and financial planning.
If the monthly income is high and stable, you can consider using the biweekly repayment method. The sum of interest paid every two weeks is less than the same amount of principal and interest, and the repayment amount is stable, which will not bring about the problem of high monthly payment pressure in the early stage. Judging from the interest and difference between biweekly loan and equal principal and interest, taking the same loan amount as an example, the longer the loan term, the greater the interest and difference, and the more appropriate it is to choose biweekly loan. However, there will be three repayments in individual months every year, which will increase the repayment pressure at a certain stage to some extent.
Suggestion: The amount of loan should be considered from your own assets and family situation, and you should make a general assessment of your assets and credit situation before lending.
Repaying the loan in advance: look at the funds
The problem of repaying loans in advance is also often encountered. The reason is nothing more than the fluctuation of bank interest rate and the change of income. Many young people start buying houses early in their careers. Because of their weak economic strength and low repayment ability, the period of applying for mortgage is generally longer. Later, with the increase of income and the rise of bank interest rate, many people will have plans to repay the loan in advance. But the question of whether it is cost-effective needs careful consideration. Therefore, for these friends, when buying a wedding room with a loan, we should consider the factor of repaying the loan in advance.
Many banks have prepayment business. Mortgage generally adopts "individual housing portfolio loan", which consists of two parts: housing provident fund loan and housing commercial loan. If property buyers choose this loan method, it will be "preferential" to repay commercial loans first. Because provident fund loans contain policy subsidies and the loan interest rate is much lower than that of commercial loans, it is relatively cost-effective for buyers to return commercial loans with higher loan interest rates in advance.
The prepayment of banks can be roughly divided into two categories: full prepayment and partial prepayment. Repayment in full in advance is the most cost-effective method and the simplest procedure. However, borrowers should choose this method according to their own ability, and cannot disrupt other capital plans in order to pay off all bank debts in advance.
Suggestion: Don't buy a house beyond your ability. If the monthly repayment amount is too high, it will be difficult to deal with emergencies. Married couples should try their best to choose the type with longer loan life according to their own situation, on the one hand, to ease their pressure of repaying loans and ensure the quality of life after marriage; On the other hand, if the business develops smoothly, you can repay the loan in advance.
After repaying the loan: cancel the mortgage.
Don't think that paying off the loan can completely complete the mission. Remember to cancel the mortgage after repaying the loan. Because many lenders are indifferent to the mortgage, they often forget to go to the property right department to cancel the mortgage after prepayment. Although the loan has been paid off, the house is still in the property right department for the record, which will bring unnecessary trouble to future housing transactions. When the lender cancels, it needs to apply for the mortgage return certificate in the bank, get the cancellation registration form from the mortgage property department (be careful not to do it across regions), and finally attach the purchase contract or property certificate to cancel the mortgage.
(The above answers were published on 20 17- 10-09. Please refer to the actual situation for the current purchase policy. )
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