Ordinary small loans, of course, the shorter the better, so it is more cost-effective to pay less bank interest. If it is a mortgage, the longer the better. Because of the inflation rate, the currency will always depreciate, and the value of any dynasty will depreciate. So the longer you choose, the better. The rest of the money can be used to buy a car, invest in funds and do many things in Qian Shengqian. (Of course, families who are not good at financial management still choose shorter loan terms and less interest).

First, how to choose a loan to buy a house, generally three issues should be considered:

① Is the repayment method equal to the principal and interest or average capital?

② Is the loan time as long as possible?

③ Whether prepayment is appropriate. To sum up, should we have more liquidity or hand it over to the bank? The above three questions are essentially equivalent to "Can the liquidity yield exceed the bank loan interest rate?" Knowing this clearly, individuals can choose the term of the loan according to their own situation. For example, what are the reasons for buying a house, future income changes, and whether there are other investment channels.

Second, the loan to buy a house is divided into three types:

1. Those who just need to buy a house for self-occupation and do not intend to sell the property or replace the new house for a long time belong to consumption, and the shorter the time, the better. We generally recommend the repayment period of self-occupied houses, and buyers choose 15-20 as the repayment period, and the total amount of interest paid is reasonable, so their normal living standards will not be greatly affected.

2. Self-occupation and investment, buying a house for self-occupation and investment are likely to replace or sell new houses in the medium and long term, which is a long-term investment. The longer the deadline, the better. In fact, this situation is not absolute. If you have other investment channels, you can get a return on investment higher than the interest rate of housing loans. The longer the loan period, the better. If you are just an ordinary office worker and don't have many financial channels, you just want to buy a house as an investment. In order to save interest, it is suggested that the loan term should be as short as possible.

3. invest in buying a house, but intend to hold it for a short time, with the purpose of real estate speculation. At this time, it depends on how much income you think you can get from real estate speculation. If you think that real estate will continue the big bull market, house prices will continue to soar and you can get high returns, then the longer the loan period, the better; If we think that the era of soaring real estate has passed and the future growth will enter a low speed, such as around 8%, then the shorter the loan period, the better. Therefore, choose the loan installment period according to your own situation.