October 18th, 2010 | 
Author: Since 2004, the mortgage has gone through two adjustments. A set of mortgage loans 800,000 yuan, 20-year housing loans to commercial terms, in equal installments of principal and interest repayment method manner, and now will have to pay 120 yuan a month or so. In the continuing psychological impact of interest rates, the more buyers began to compare interest rates, looking for their own loans.
Fixed rate and floating rate comparison
After tightening, the solid credit interest rate will be adjusted, China Merchants Bank, China Construction Bank to raise benchmark interest rates fixed. Floating mortgage rates lower still solid credit obvious advantages. After the hike, more than 5 years floating rate loans rose to 6.39%, higher than the current 10-year Everbright Bank of solid loan rate 6.08-6.38%. But for high-quality customers, apply for loans is still floating cost-effective than fixed loans. Taking into account the central bank floating rate of 10% lower limit, bank customers more than 5 years of quality floating-rate mortgage was 5.751 percent adjustable, Everbright Bank of incentives than the current fixed-rate mortgage of 6.08%, floating rate mortgages or low.
The advantages of solid loan-to-
Biggest advantage is that we can help home buyers risk locking the interest rate fluctuations, particularly in the case of interest rates generally bullish, once buyers have signed contracts with banks, no matter what the central bank changes interest rates, home buyers in accordance with the contractual rate of repayment , without movements.
Fixed loans for people
Comparison of a fixed interest rate for three groups
First, understand the financial markets, judging sharp movements in interest rates, that interest rates on a rate hike in China, to bear certain interest rate risk;
Second, income is high and stable, can resolve shorter repayment period repayment brought greater pressure on the buyers interest rate changes resentment;
Third, the investment off, especially for the purchase of commercial real estate clients, as investment in fixed-rate mortgage you can lock in the interest rate risk.
It is worth mentioning are: discount rate (interest rate floor) only for the implementation of quality customers, that the credit rating of A or above, or civil, administrative public sector employees, teachers, researchers, doctors, lawyers, financial sector workers and other people.
3 Bank of solid loan rate status
Earlier this year, China Construction Bank, China Everbright Bank, China Merchants Bank and other banks were introduced three fixed-rate mortgage. With the central bank on April 28, after raising interest rates to 0.27%, China Merchants Bank immediately fixed-rate mortgage interest rates up 0.27% in the original basis; Construction Bank has set the benchmark interest rates fixed rate of 0.9%, but the duration of the prime rate will remain original interest rate; Everbright Bank fixed rate mortgage interest rate has not yet adjusted.
Solid credit risk
From an investor perspective, the use of fixed-rate loans, the short term at least face the following negative:
First, prepayment risk. From now, almost 90% of investors have had or intend to early repayment, if you choose a fixed rate loan, then the additional penalty for early repayment will have to consider.
Second, can credit a shorter duration. Currently the two banks have launched products a maximum period of 10 years, which means that cash flow is not sufficient investors may take on more weight than the floating rate loan repayment pressure.
Third, when mortgage rates fall, fixed switch to floating rate borrowers will be attention, but apply a fixed interest rate the bank in turn do to floating interest rate, fixed-rate loans to more than 5 years duration was free of penalty, or will pay a certain percentage of liquidated damages. Everbright Bank offers fixed-rate mortgage after the 6.08%, floating-rate mortgages, or low.
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