I have 21 years of experience in buying a house with a loan to share with you the dry goods of a two-point loan to buy a house:
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(1) After enough down payment, enlarge the maximum loan to buy a house:
Remember: the more restrictive and suppressed things, the more you must buy them as soon as possible, and the "rotten street things" can be bought at will, don't!
Principle: Scarce things are expensive!
(2) Choice of loan repayment method:
1, equal principal and interest repayment loan: the amount of loan repayment is the same every month.
2, equal principal repayment loan: the amount of repayment in the first month of equal principal repayment is the largest, and the minimum repayment amount of each month in the back shows a downward development trend, in general, the pressure of early repayment is very large, and the minimum repayment amount in the middle and late period is getting lower and lower;
3, the comparison of the two ways of repayment: in general: choose the equal principal and interest repayment method, the total interest of the expenditure is more than the interest of the equal principal expenditure, and the longer the loan term, the greater the difference between the equal principal and the interest of the equal principal and interest.
4, conclusion: from the perspective of interest, it is more cost-effective to choose the equal principal repayment method, because the equal principal repayment method, the total interest of the loan generated, is less than the total interest of the equal principal and interest!
My loan method has always been to grit my teeth and choose to repay the same amount of principal!
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(3) Choice of provident fund repayment method:
It is not discussed here whether the provident fund is an equal principal or a loan method with equal principal and interest.
It is particularly important to talk only about whether the provident fund is a monthly deduction for loan repayment or an annual deduction for loan repayment, which affects the amount of interest:
Generally everyone will choose the provident fund monthly deduction to repay the loan, which will reduce some of the pressure of life, but this way of repaying the loan, than the provident fund annual deduction method to repay the loan to spend a lot of interest money, the repayment time will be longer, for example!
Please note: throwing bricks and leading jade only talks about ideas, you don't have to dwell on my hypothetical data:
Hypothesis 1: The total loan is 1.2 million, the loan is 10 years (the annual loan is repaid 120,000, the monthly loan is repaid 10,000), the provident fund account has the original accumulation before buying a house, and the provident fund is 5,000 yuan / month
Hypothesis 2: Of the 10,000 loans you repay every month, 3,000 are the principal of the loan and 7,000 are the interest on the loan!
Talk about monthly and annual credits for sub-provident funds:
1, CPF monthly deduction:
In the one-year repayment, the principal is repaid: 3000 * December = 42,000 / year, interest repayment: 7000 * December = 84,000 / year, the original accumulation of the provident fund is 120,000, just one year to repay the loan, I did not take out the money to repay the loan, the remaining loan is: 1.2 million - 42,000 = 1.158 million!
(The interest is sent to the bank for free, not the principal)
2, provident fund annual deduction: (focus on this)
The CPF has a requirement of twice a year (April and July) annual deduction for you to choose!
In the first year, you directly deduct the 120,000 yuan accumulated by the original provident fund into it, and your remaining loan is 1.2 million - 120,000 = 1.08 million
Then, in this first year, you take the money to repay the loan of 1.08 million, and you can repay 42,000 (which should be less than this number), so that after one year your total loan is: 1.08 million - 42,000 = 1.038 million
The next year, you repay the loan for a year, and then accumulate the provident fund: 5000 * December = 60,000, and then deduct, so that the total loan remaining is: 1.038 million - 60,000 = 978,000
Then continue, 978,000 loan repayment (take the money yourself), to a year later, the provident fund continues to deduct 60,000, it is like this repeated provident fund annual deduction of the total loan, the total amount of the loan will be reduced very quickly, the interest will also be reduced a lot...
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3, I will make a summary of the above two types of provident fund repayment description process:
a), CPF monthly deduction:
In the first year, the original accumulation of provident fund 120,000 in repayment, do not have to take money to repay, the second year 5,000 yuan provident fund in repayment, their own monthly repayment of 5,000 can be, this is suitable for people with high capital pressure in the early stage, but the interest is high, the repayment speed is slow!
b) Annual CPF Credit:
Normally take the money monthly repayment, and then the provident fund deducts the total amount of the loan every year, so that the total amount of the loan repayment is very fast, if you choose to repay the same amount of principal, you will find that after the annual provident fund deduction, the monthly repayment will come down very quickly, so that the total amount of the loan is fast, the principal is also fast, and the interest is much less
Therefore, it is strongly recommended to choose the provident fund annual deduction, even if the first or second year of capital pressure, choose the monthly deduction, when the funds are tolerant immediately changed to annual deduction, this way is the best way to save interest, while the repayment speed is very fast!
I've always chosen the CPF annual deduction!
Note: CPF month or annual deduction, can be changed once a year!
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