Category: Save money battle

When applying for mortgage underwriting, there are two repayment methods to choose from: "Even repayment of principal and interest" and "Even repayment of principal".

For average principal and interest amortization, the monthly repayment amount is fixed, and the total interest expenditure is higher; for average principal amortization, the monthly principal is fixed, the interest decreases month by month, and the total interest expenditure is lower, but the initial monthly payment is higher.

Choosing the right method can help reduce your total interest expense.

When applying for a mortgage, you need to understand the concepts of "grace period" and "extended repayment period".

During the grace period, you only need to repay the interest, and after the end, you will have to repay the principal and interest at the same time. For example, for a loan of 10 million yuan, the monthly interest during the grace period is about 15,000 yuan, and the repayment amount after the end is about 42,000 yuan.

Extending the repayment period to 40 years will shorten the principal repayment period. Homebuyers should evaluate their repayment ability, avoid being misled by low interest rates, and consider additional taxes and decoration costs to make a rational decision on whether to buy a house.