I. Types of real estate mortgage
1. Decreasing repayment mortgage loan: This repayment method is to repay the principal first, equal monthly, pay off within the specified repayment period, and then repay the interest, which is calculated on a daily basis and changed once a month. Simply put, after the first repayment, the interest will be calculated on a daily basis for all outstanding principal, and the interest will be less and less as time shortens.
2. Progressive mortgage loan: This method is suitable for people with uncertain funds, and a reasonable repayment amount is set according to the applicant's monthly salary income, or the repayment amount is the same every month, but the repayment time is different. As the amount decreases, the repayment time becomes shorter and shorter. The difference between the repayment amount and the repayment time shall be determined through consultation between the lending institution and the loan applicant.
3. renegotiate interest rate mortgage loan: this kind of loan is mortgage loan. As long as the loan term is, for example, every three, four or five years, lending institutions and borrowers can renegotiate the mortgage interest rate. By using gradual mortgage, the initial repayment amount can be reduced. This method can also make more people choose mortgage loans, use renegotiated interest rates to reduce mortgage loans, and let borrowers push them to lending institutions after interest rates rise. However, this method sometimes causes losses to borrowers. The increase in interest rates will not only increase the burden of borrowers, but also increase the repayment amount of borrowers in a planned way.
Well, these are the three ways of housing mortgage loan. When using housing mortgage loan, you must choose the loan method that suits you.