Mortgage interest is usually high. Is it necessary to pay a little more down payment?

A few years ago, a classmate in Li Ge, temporarily named X Jun, wanted to buy a wedding room with a total price of more than 2 million. He came to consult me about the specific mortgage method as a "financial expert".

My suggestion is very clear:

1. If you can pay less down payment, you can pay less, and if you can lend, you can lend.

2. Choose the repayment method of equal principal and interest instead of the average capital repayment method.

Keep it as long as you can, preferably 30 years.

However, I gave him three suggestions, and finally after their family discussed them, none of them were adopted.

He tried his best to raise the down payment to 60%.

In order to save interest expenses on the books, the average capital repayment method with decreasing repayment pressure month by month was finally chosen.

Similarly, in order to save book interest, he finally gritted his teeth and chose 10 to pay off the loan. After all, paying off in 10 year and paying off in 30 years can make a difference of hundreds of thousands of interest.

In this regard, Li Ge also said that he could do nothing ~

His choice is also the choice of most ordinary people who have no financial thinking-they are used to looking at wealth figures with a static eye, and they are not happy about debt. They always want to pay as little interest as possible, pay off their loans as soon as possible and get rid of their debts as soon as possible.

Shakespeare has a classic dialogue in Hamlet: "Don't borrow money from others, and don't lend money to others. Lending money to others will lose dignity, and lending money to others will lose both your own money and your own money. "

Haha, my heart is broken, old chap. ~

Most intellectuals in history have great feelings and ideals, most of them are leftists, and so is Shakespeare. That's why they created an image of The Merchant of Venice with their imagination, which is quite different from the objective facts.

If everyone follows Shakespeare's attitude, capitalism will not develop at all, and the modern financial system will be water without a source and a tree without a root.

However, this is in line with the cognitive and behavioral instinct of ordinary people.

Ordinary people are definitely reluctant to lend money to others, because they are afraid that others will be hooligans and will not pay back, and they will be embarrassed to collect debts, and then the dumb will eat Huanglian.

Ordinary people are reluctant to borrow money from others unless they have to. How cheeky are you to touch others? Ordinary people can't pull down this old face ~

After sorting out these fundamental problems, we will find that the way of thinking that Mr. X adheres to, if his talent coincides with the opportunity, or if he can strive to become a middle class, if his talent is dull, he lacks the ability to see the opportunity and the courage to seize it, he can only live in the middle and lower classes all his life, but no matter how hard he tries, it is difficult to become a rich man one day.

Back to the specific context of buying a house with a loan, we can see it more clearly.

1. Why did Brother Li suggest that he pay less down payment and get more loans?

Because mortgage is the lowest interest rate loan that can be found in China financial market, at that time, the mortgage interest rate could be 15% off the benchmark loan interest rate issued by the central bank, and the provident fund loan interest rate was even lower, equivalent to 30% off the benchmark loan interest rate.

More importantly, when the pressure of rising house prices continues to be large, the state will inevitably continue to carry out differentiated loan restriction policies.

The first loan to buy a house must be the most cost-effective. I want to borrow money to buy a second suite in the future. Sorry, the down payment may increase from 30% to 50%, 70% or even 80% like Beijing. When the down payment reaches 80%, the leverage effect is almost gone.

Moreover, the loan interest rate will be increased from 30% or 8.5% to the punitive interest rate of 1. 1 times, 1.2 times or even 1.3 times.

In particular, the provident fund loan policy stipulates that the first home loan cannot be applied for a second loan until it is paid off.

Therefore, the opportunity to buy a house with the first loan should be especially cherished, and we must make the best use of it as much as possible!

No matter how much money you have, whether you just try to pay 30% down payment or even buy a house in full, you should pay 30% down payment and 70% loan as much as possible, and try to get such "preferential" money from the bank for your own use.

Secondly, why did Brother Li suggest to choose the equal principal and interest repayment method with higher total interest expenditure instead of the average principal repayment method?

The following is Xiao Jiujiu in "Buying a house like this can save 65,438+10,000 yuan", Brother Li? After a detailed analysis of the article, click on the blue font title to review the professional interpretation of Brother Li.

Simply put, the average capital repayment method and the equal principal and interest repayment method have the same interest calculation method, and the former will not save more interest than the latter, which is more cost-effective. Finally, it is found that the total interest of the average capital repayment method is relatively small, just because the average capital repayment method occupies less bank funds.

3. Why did Brother Li suggest that the longer the loan, the better?

Coping with the continuous currency overshoot of the central bank.

The total amount of money (M2) in China today is more than 100 times that of 30 years ago!

Even with the gradual maturity of China's economy, the speed of excessive money will gradually slow down, but inflation will not completely disappear, and our money will still be looted by the "inflation tax".

This leads to people who only live on their hard-earned wages, and then deposit the balance of wages in the bank, which will definitely be "looted" by the government.

Those who only have 1 10,000, but dare to borrow 3 million yuan from the bank to buy a house, may not be "robbed" by the government, but in turn "robbed" the poor who will only deposit their money in the bank.

You use leverage to make money and dilute wealth, and I will follow the trend. I will use your excess money for my own use through a loan. You put the lever, I'll put the lever. Maybe I won't suffer in the end, but some will.

In the process of super-issuing money, a few smart people with financial thinking use leverage to make themselves earn rather than lose, but most ordinary people can only pay at a loss. Over time, people who dare to borrow money to buy high-quality assets will become richer and richer, and those who dare not borrow money and only deposit their money in the bank will become poorer and poorer.

Therefore, the most rational choice is to borrow with a low-interest mortgage as much as possible, and the sooner you don't pay it back, the better.

Once you choose to pay off the loan at 10 in order to save the book interest, you will be passive at that time-if you start to pay off the loan at the age of 30, you will only be 40 after 10, which is the peak of your career income, and your income is rising, but the loan has been paid off. At this time, if you want to buy a house with a second loan, you will face a strict loan restriction policy, which is very uneconomical.

If you choose to pay off the loan in 30 years, or start paying off at 30 years old and pay off at 60 years old, which is close to retirement age, you can make full use of this high-quality loan.

Also consider that as your income continues to increase, the repayment pressure will gradually decrease. Even if I feel a little stressed at the moment, 10, it will be a piece of cake to watch this monthly payment in 20 years.

Finally, I would like to remind you that today's article is an explosive old article written by Brother Li three years ago. There is nothing wrong with the concept, it is very important. However, the market environment has changed in recent years, so I want to emphasize a few more points:

1, the era of the great leap forward in real estate has passed. Buying a house alone cannot change a person's life, but it does not mean that house prices will never rise. In the long run, housing prices in central big cities with continuous population inflow will continue to rise. Even with strict regulation, the rate of increase will slow down and the range will become smaller, so houses are no longer the best investment varieties.

2, remember that "housing is not speculation", the above concept and method of buying a house with loans are more suitable for those who just need it.

3. Under the principle of "minimum down payment, maximum loan", we should also consider our actual repayment ability. Don't eat puffer fish desperately, so the monthly supply will be overwhelmed and life will be in an extremely dangerous state.

4. Leverage should be used in the cutting edge, buying high-quality assets that can appreciate in the long run (good liabilities), rather than being used for investment or consumer goods (bad liabilities). Buying mobile phones, computers, clothes, bags and happy trips with Bai Hua White Credit Card will only get poorer and poorer.

5. Why does the financial industry make so much money? The main profit comes from the interest margin.

If you put your money in the bank and give you 2% a year, it will be lent out, 7% a year, 5% a year, and 654.38+000 billion deposits will earn 500 million a year.

Brokerage, insurance and P2P…… all have this model.

Brokers issued 654.38+0 billion convertible bonds, and coupon rate lent 654.38+0% to customers of two financial institutions, with an interest rate of 6%, earning 500 million a year. Note that banks should also worry about bad debts when lending through P2P. Margin financing and securities lending are guaranteed. If you can't hold on, you will be forced to close your position. The principal of a securities firm is always safe, and it is guaranteed to be collected through drought and flood.

In recent years, so many Hong Kong stock brokers have opened accounts to send this and that, and the cost of obtaining customers is extremely high. Once they are addicted, customers will get used to financing and making new ones. There is too much porridge now, and it is easy to lose money when financing new ones, but brokers have been making money.

So the key to leverage is interest rate.

A loan with an annual interest rate of 3% is called "welfare", and you can borrow as much as you want;

4% loan, a godsend, borrow;

5% loan, good at financial management, can also borrow;

5.5% of the loan, if it is a long-term loan of 10 years or more, can also be borrowed.

For loans exceeding 5.5%, be careful in the current market environment.