Generally speaking, the interest rate of mortgage is relatively low. Usually lower than the operating loans and credit consumption loans on the market. So the mortgage interest is not because of the high interest rate, but because of the long term.

Then, since the loan period is long and the cost is high, why does everyone borrow for twenty or thirty years? That's because the longer the loan term, the less the monthly payment, and the less the impact of monthly payment on life.

By extending the loan period, the monthly pressure can be reduced, and the loan amount can be appropriately increased to buy a bigger house.

For example, a loan of 20 years and a monthly payment of 5,000 yuan are more appropriate. Then if the loan lasts for 30 years and the monthly payment is still 5000 yuan, then I can borrow more money and choose a bigger and better house.

For example, some people are still struggling for 5000 yuan a month. If they are still struggling for 3000 yuan, they can extend the loan period and reduce the monthly payment. Although on the whole, interest is paid more, but the life in front of us has to go on and we can only choose.

In addition, there is another possibility. For example, I have a commercial loan of 1.6 million, and I also have a time deposit of 1.6 million. Why don't I repay the business loan? Because I have to decorate the house after I take it. If I pay the mortgage, I won't have the money to decorate. I have to borrow a consumer loan to decorate, and the interest rate of consumer loan is higher than that of mortgage, and the term is short. I feel that it is difficult to pay back 654.38+0.6 million in 2-3 years, so I will not pay it back.

In fact, it doesn't matter if the deadline is longer. When you have extra money on hand, you can pay back some money in advance, reduce the loan principal and reduce interest expenses. You can also choose to shorten the loan term after repaying part of the loan in advance, so that the monthly payment is equivalent to that before, so that the repayment speed will also be improved and the interest expense will be reduced. It doesn't matter if it's longer, and it's unlikely to stretch if it's shorter.