How to choose a house mortgage contract
In the process of buying a house, a mortgage loan is the choice of most people, but how to choose a suitable mortgage contract is a science. Recently, discussions on mortgage interest rates, repayment methods, bank discounts and other topics have been very popular across the Internet. This article will combine the hot topics of the past 10 days to provide you with a detailed analysis of how to choose a house mortgage contract that suits you.
1. Basic types of mortgage loans
There are two main types of mortgage loans:business loanandProvident Fund Loan. Here's a comparison of the two:
| Type | interest rate | Loan amount | repayment period |
|---|---|---|---|
| business loan | 4.1%-4.9% (floating) | The maximum is 70%-80% of the house price | Up to 30 years |
| Provident Fund Loan | 3.1%-3.25% (fixed) | The maximum is 60%-70% of the house price | Up to 30 years |
2. Choice of repayment method
The repayment method directly affects your monthly payment pressure and total interest expenses. The following is a comparison of two mainstream repayment methods:
| Repayment method | Features | Suitable for the crowd |
|---|---|---|
| Equal principal and interest | The monthly repayment amount is fixed, and the interest proportion gradually decreases | People who have stable income and want a balanced monthly payment |
| Equal amount of principal | The monthly principal repayment is fixed, the interest decreases month by month, and the monthly payment gradually decreases | People with higher income who want to reduce total interest expenses |
3. Comparison of preferential policies of banks
Recently, many banks have launched discounts on mortgage interest rates. The following are preferential policies of some banks:
| bank | preferential interest rate | Preferential terms |
|---|---|---|
| ICBC | 4.1% (first house) | If the loan amount exceeds RMB 1 million, you can enjoy a 0.1% discount |
| China Construction Bank | 4.15% (first house) | First-year interest rate discount for new customers is 0.2% |
| China Merchants Bank | 4.05% (quality customers) | Deposits or financial management reach a certain amount |
4. Things to note when choosing a mortgage contract
1.interest rate floating clause: The interest rates of some banks will fluctuate with the market, so you need to pay attention to the interest rate adjustment clauses in the contract.
2.Early repayment liquidated damages: Some banks charge liquidated damages for early repayment, so you need to know in advance.
3.loan term: The longer the loan term, the higher the total interest expense, but the smaller the monthly payment pressure. You need to choose according to your own economic situation.
4.banking services: Choose a bank with good service and fast loan disbursement to avoid delaying the progress of home purchase due to cumbersome procedures.
5. Analysis of recent hot topics
In the past 10 days, hot topics about housing loans have mainly focused on the following aspects:
1.Mortgage interest rates cut: Banks in many places have lowered interest rates for first-time home buyers, lowering the cost of buying a home.
2.Provident fund loan limit increased: Some cities have increased provident fund loan limits to reduce pressure on home buyers.
3.Optimization of repayment methods: Some banks have launched “flexible repayment” products, allowing borrowers to adjust their repayment plans according to changes in income.
Conclusion
Choosing a suitable mortgage contract requires comprehensive consideration of interest rates, repayment methods, bank discounts and other factors. It is recommended that home buyers compare the policies of several banks before signing a contract and choose the most suitable plan based on their own financial situation. The recent reduction in mortgage interest rates and the relaxation of provident fund policies have also provided more choices for home buyers.
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