Why do most people choose to take out loans to buy houses despite the high interest rates on bank loans?

When it comes to buying a house, everyone has many topics to talk about, and probably the most popular one is the house price! However, housing prices around Beijing and Bazhou have been regulated by the state. Few people are qualified to buy, and all housing prices have tended to be rational. Most people who just need to buy a house have already bought a property in Bazhou. The topic I want to talk to you next is why most people choose to take loans to buy a house despite the high interest rates on bank loans?

How high is the interest rate on a mortgage? Let’s take a loan of 1 million and pay it back in 30 years as an example to give you a simple calculation! For a 30-year loan of 1 million yuan, the monthly repayment is: 4831.98 yuan; if the loan principal is 1 million yuan; term: 30 years; according to the People's Bank of China's benchmark annual interest rate for loans with a term of more than 5 years: 4.10% (under unchanged conditions), equal amounts are used Principal and interest repayment method. Total repayment: 1.7395 million yuan, total interest: 739,500 yuan. When the base annual interest rate of the loan changes, for example, if it is a commercial loan and the base annual interest rate is 4.90%, the algorithm becomes: 1. Repayment of equal principal and interest; total loan amount: 1,000,000.00 yuan; number of repayment months; 360 months; each Monthly repayment: 5307.26 yuan; total interest paid: 910,600 yuan; total principal and interest: 1.9106 million yuan.

2. Equal principal repayment: Total loan: 1,000,000.00 yuan; Number of repayment months: 360 months; First month repayment: 6861.11 yuan; Monthly decrease: 11.35 yuan; Total interest paid is 737,000 yuan ; Total principal and interest: 1.737 million yuan.

Through the above rough calculation, we can know that for our loan of 1 million yuan, the interest for each person is 8.9 million yuan! In other words, the total price of the house you bought may be only one million, but the interest and principal you will pay after 30 years may be as high as about two million! Is the house bought like this really worth it? Why do so many people choose to take out loans to buy houses?

One way to say it: Although we will have high interest rates when we take out a loan to buy a house, this is the lowest interest rate for a general loan! But now it is impossible to live without a house. The second statement: Although I can buy a house with full payment, my money still needs to be invested in other projects, and the income from other projects is much better than the profit from the mortgage. The third statement: The price of houses will keep rising! I don’t know how many times the house will double in thirty years! So the interest on these hundreds of thousands is negligible! The above three things are very reasonable. I think buying a house with a loan is a good choice whether you have money or not. In fact, it is not a shameful thing to take a loan to buy a new house. According to statistics, 95% of people Will choose to take a loan to buy a house, this does not mean that only 5% of people have the money to pay the full price! But there are also a large number of people who don’t have the money to pay the full payment, but because they can save a lot of money by choosing to buy a house, which can be used for other purposes! After listening to my introduction, I believe you all have a comprehensive understanding of why you still choose to take out a loan to buy a house despite the high interest rates! If you want to get a loan to buy a house in Bazhou, it is definitely a very wise choice!

Sunshine County (Oak Bay)

For sale

Reference price: Reference average price 7,200 yuan/_

Property address: Hebei West of North Taishan Road, Fumin Road, Bazhou City, Langfang City

Property phone number: 400-818-0066 ext. 040928

Buy a house and get a parking space and a basement. It is 2 kilometers away from the subway entrance

Because it is supported by state policies.

In the process of purchasing commercial housing, if you do not have enough funds, you can get a bank loan. But you need to have high credit, and the state supports bank loans to buy a house.

Commercial housing refers to a packaged sample room that can be moved in directly without decoration.

Why choose a mortgage loan to buy a house when you have the full payment?

Why do you need a loan to buy a house even if you have the full payment? You also have to pay interest on the loan, which adds up to a lot. However, some people are unwilling to pay the full amount even if they have it, and choose to pay in installments. The answer is because a loan can not only save money, but also make money!

Why do you need a loan to buy a house even if you have the full payment? You also have to pay interest on the loan, which adds up to a lot. However, some people are unwilling to pay the full amount even if they have it, and choose to pay in installments.

The answer is because a loan can not only save money, but also make money!

1. Reasons for choosing a mortgage

Let’s do the math. First of all, the current interest rate for commercial loans over five years is 4.9%, and the interest rate for provident fund loans over five years is 3.25%. As an assumption, if the full payment for a property is 1 million, and the buyer only has 1 million in cash, then after the full payment is made, there will be no cash in hand, and they can only hope for the increase in housing prices, and the increase in housing prices will only Can be obtained when the property is sold.

But what if the full payment is not made? For an installment mortgage, if the down payment for the first home is calculated as 30%, there will be 700,000 cash available. In other words, as long as the benefits obtained from 700,000 yuan exceed the mortgage interest rate, it is a profit.

There are many financial products on the market with higher than 4.9%. If we use a commercial loan with an interest rate of 4.95% and a loan of 700,000 yuan for 30 years, the monthly payment is 3,715.09 yuan, and the annual repayment is 44,581.08 yuan. 700,000 per year, the annual acquisition rate is 6.4%. In this way, not only will you own a house, but you will also have 700,000 in cash after 30 years. If calculated according to this plan, provident fund loans will be more favorable.

2. If house prices fall, are there any benefits to getting a mortgage?

Based on the above analysis, it seems that it is relatively better to choose a loan to buy a house. It seems that there is only one risk in buying a house with a loan, and that is the risk of a sharp drop in house prices. The above solutions are still valid if house prices fall slightly or consolidate. Let’s take a look at this set of data again:

Inflation is a thief that eats up wealth. If calculated according to this data, a monthly payment of three to four thousand now will be nothing in thirty years. . After all, in the last century, people still had to pay hundreds of dollars a month. Secondly, in the years of commercial housing reform, real estate has taken the lead among financial products. So the risk of a sharp fall in house prices doesn't make sense.

Taking a step back, even if house prices plummet, making installment payments seems to be the right choice. From an economic and financial perspective, capital has time value, and according to the industry analysis above, current prices The rising coefficient has exceeded the deposit interest rate for one-year fixed deposits, which means we are now in the era of negative interest rates. Regardless of whether house prices are rising or falling, as long as it is in this state, relatively speaking, being able to get a loan is actually a kind of wealth.

All in all, don’t think about how much interest you pay, and don’t think about the plummeting housing prices. In the decades of the loan, compared with inflation, both the plummeting and the interest will be compensated. Just believe that the money you save by taking out a loan to buy a house, after 10, 20, or 30 years of operation, the money you earn will be much greater than the interest you paid to buy the house.

In addition, you have to know how many people want to cash out their properties as mortgage loans now! Moreover, banks and other lending institutions are not easy to lend now. They are all very tight, so if you have the opportunity to get a mortgage loan, don’t hesitate!

Why do many wealthy people who are not short of money still need loans to buy houses?

Whether you are a rich person, an ordinary person or even a wealthy person, you must take out a loan to buy a house instead of paying the full price foolishly.

Rich people understand this truth better than ordinary people. So they want to take advantage of bank loans. If possible, they would like to pay 10% down.

But ordinary people will not have such a profound understanding as rich people. This is mainly due to the limitations of traditional thinking patterns. Most ordinary people are forced to take out loans to buy houses because they really don’t have that much money and can only borrow money. Many people may not know that in China, a loan for buying a house is a benefit provided by the government in disguise.

Since it is a welfare, why not? Of course, rich people understand all this. Even if they have a lot of cash, they still need to take out a loan.

Many people may not understand why I am not paying interest to the bank for a house loan. It is just a business transaction. How come it is a benefit given to me by the government?

In China, ordinary people only get loans from banks twice in their lives when banks are very friendly. Once you buy a house and another time you buy a car. These two loans are easy and you can enjoy certain discounts if you meet the conditions.

In the future, it will be very difficult for ordinary people to get loans from banks. Some people say that it is very easy now. Brother, what you are talking about is not a loan at all, do you understand? Are you consuming, consuming, consuming? Although on the surface it looks like the bank has given you money, it is not a loan in the true sense.

If you haven't understood this sentence yet, I don't know how to explain it to you.

In a word, whether you buy a house or a car, you must get a loan. This is a free benefit, why not?

Moreover, these benefits are only available to ordinary people a few times before you are fifty.

In the future, banks will not lend you money.

Why you need a loan to buy a house

Why you need a loan to buy a house

The main reason for taking a loan to buy a house is to reduce the pressure of buying a house. Now the price of buying a house is very expensive. If you get a bank loan, Just pay the mortgage in monthly installments, thereby reducing the stress of life. However, when taking a loan to buy a house, you must also prepare the materials and ensure good credit and stable income, otherwise the bank will not allow the loan.

What are the procedures for buying a house with a loan

1. Check the qualifications for buying a house

Before applying for a loan, buyers should first check whether they meet the local house purchase policy. Nowadays, many big cities have policies restricting the purchase of houses. The purchase restriction policy is mainly aimed at people who buy multiple houses. If you have not purchased a house before, you will not be restricted, but you still need to consult for details.

2. Determine the home purchase goal

After the home buyer meets the local purchase policy, he can start to look at the house and choose a house. Don’t be afraid of trouble and hard work in the process of choosing a house, just spend more Only by thinking can you avoid regrets later. Before everyone buys a house, they should have thought about what kind of house they want to buy, including the size of the house, the location of the house, etc. This will help you make a house purchase plan in advance.

3. Be prepared for the loan

After selecting the house, you can start to prepare for the loan. To prepare the relevant information for the loan, you need to provide your personal identity document, marriage certificate, Proof of work income, etc. The second step is to prepare the down payment and deposit. If you come across a house that suits your idea when looking at houses, you generally need to pay a deposit for the purchase.

4. Pay the down payment and sign the contract

You have already paid a deposit when choosing a house. When making the down payment, you should pay attention to the calculation based on the deposit. Generally, when making a down payment, there is also the issue of signing a house purchase contract. The contents of the house purchase contract must be read clearly, including the area of ??the house, unit price, total price, building, and floor. In addition, according to different situations, both parties can also negotiate and sign supplementary documents. protocol.

5. Go through the loan procedures

After that, the home buyer will start to go through the loan application procedures. The home buyer will bring the loan information he has prepared in advance to the lending bank. Generally, there will be A dedicated loan officer is available to meet you. During this period, a loan contract needs to be signed, and home buyers should also pay attention to the contents in the contract.

6. Waiting for the handover of the house

After submitting the loan application, the bank will lend money in about a month. After that, the buyer only needs to hand over the house according to the time agreed in the purchase contract. . Home buyers can invite specialized home inspectors to inspect the house from top to bottom, inside and out in accordance with relevant industry standards, which will make them feel more at ease.

Why do home buyers choose?

Why do home buyers choose? 1. The approval rate is relatively high. Go to the bank to apply for a loan. The review is very strict. If there are any flaws in your personal credit report, It’s easy to get turned down for a loan. Although applying for a loan through a company requires review of personal information and credit, different loans will be launched based on the borrower's different circumstances. For example, raising loan interest rates for customers with bad credit. Generally speaking, loan application fees are higher for borrowers with bad credit. Of course, if your credit status is extremely poor, it will not be easy to get a loan. 2. The procedures are very convenient. Generally speaking, the lender can obtain funds by submitting application materials and signing a contract. If you go to a bank to apply, the review time will be longer because bank loans have relatively more procedures. The process saves the lender a certain amount of time. 3. Fast processing: Company loans are much faster than bank loans. Some loan companies apply for credit loans, and borrowers can obtain funds as soon as the same day. For friends who are in urgent need of funds, it will be much better to apply for a loan through a loan company.

This is the end of the introduction on why a loan is better for buying a house and why a loan is better than full payment. I wonder if you found the information you need?