Buy puzzle: loan terms how to pick the best deal?
buyers to determine the length of the term of the loan is a difficult decision: long term means paying more interest on loans; short period means monthly repayment pressures will be very large. So, loan term you choose is the best deal?
in determine loan term zhiqian, first to integrated thinking following several problem:
a, and consider months for and income of proportion
despite handle has loan, carry has loan of pressure, but also is should to not effect family life for premise, this on need consider months for and family income of proportion. If this percentage is too high, it will reduce other expenditures of the family, thus affecting the normal family life. Monthly household income ratio can lengthen or shorten the loan term to adjust, in General, the monthly maximum should not exceed 40% of the family's monthly income.
II, taking into account differences in interest rates on bank loans
business loan interest rates is like this: under 6 months, the interest rate is 5.6%; 6 months to 1 year, the interest rate is 6%; 1-3 years, the interest rate is 6.15%; from 3 years to 5 years, interest rate of 6.4%; 5 to 30 years, the interest rate is 6.55%. As you can see, short-term lending rates vary significantly, and 3 year loan interest rate change is not large, we can be selected according to their own needs.
three, consider the advantages and disadvantages of the length of the loan term
loan term is shorter, less interest and repayment pressure increases. If the loan period is too short, directly using the full amount to buy a House, because for all homeowners to buy, typically will give its buyers discount.
longer loan terms, the more interest you'll pay more, but pressure of monthly payments reduced. In addition, some experts suggested that the term should try to choose the longest, because mortgage rates are much lower compared to other loans, cash-rich and have a willingness to invest in people, invest can borrow long-term loans, earn excess returns.
in summary, for a loan, how to choose the most suitable buyers should proceed from their specific situations to consider, not blindly or is that sentence--for their own is the best.