October 14th, 2010 | 
Author: April 27, the central bank raised its benchmark lending rate announced by 0.27 percentage points, the next day, the Ministry of Construction has announced that from May 8, 2006 onwards, various grades of individual housing provident fund lending rate up 0.18 percentage point. After once again raise interest rates, more and more people are concerned about the fixed-rate mortgage, “in what circumstances to choose what kind of mortgage products? As people are generally concerned about.
Premise | see the difference between a decision
To achieve the right to choose according to their own mortgage products, we must first clearly fixed rate housing loans and the difference between floating rate housing loans, where their own characteristics and advantages of how. Fixed-rate home loans it means when the loan contract that set a good fixed rate, regardless of how the lending period changes in market interest rates, borrowers have to pay a fixed rate of interest, not “follow the market as well as an interest rate increase, headache once.
Floating rate loans are now the most common interest rate loans, the central bank under the timely adjustment of domestic economic development, interest rate risk borne entirely by the borrower, met some time ago the situation raised interest rates, loans, people would buy a house from the next beginning of the year in accordance with the new loan repayment rate, due to housing loans longer than normal period, the borrower’s interest payments will remain in uncertainty, and always face the risk of rising borrowing costs.
However, there is once again floating rate interest rate adjustment after the banks lower than fixed-rate mortgage products launched in the prime rate is still lower. So if you do not take into account the risk of future rate hikes, choose short-term floating rate loans can lower borrowing costs, compared to fixed rate loans for mortgage-interest payments during the period the amount of locked loans, loans to avoid the duration of effective , since changes in interest rates may result in financial expenses increased risk.
Determine | what circumstances a fixed interest rate for choice?
Not hard to see from the above, choose fixed-rate mortgage is the actual number of elements can be measured by the following: first to be affected and most importantly, do you think Woguo rate Shuiping a rate hike, for now, our interest rates in 13 years The low level of social expectations on interest rates generally higher.
The second is to carefully consider their own income, if they consider that their future income is relatively stable and sufficient to cover fixed mortgages, and may wish to choose a fixed rate loan.
Third, for the second set of more home loans, consider long-term fixed rate loan home loan interest rate lock, to avoid interest rate and inflation risk.
The market has introduced fixed-rate mortgage products, including China Everbright Bank, China Construction Bank, China Merchants Bank, the loan period and divided into 1-3 years ,3-5 and 5-10 years in three levels. With China Everbright Bank, for example, the bank’s fixed-rate loan can be extended to handle second-hand housing and Commercial House, now 3, 5 and 10 year fixed rate home loan products, lending rate was 5.447%, 5.528% and 6.08 % of the loan, regardless of how central banks adjust interest rates, lenders have to maintain this rate, the borrower can take Suoding borrowing costs, to avoid interest rate exposure: If the new interest rate than a fixed rate, customers can enjoy the original interest rate with to the concession; if the new interest rate lower than fixed rates, the actual period of at least one year loan, you can remove the prepayment penalty, prepayment by choosing to avoid losses. In addition, borrowers applying for individual housing loans, can freely choose their own risk preferences fixed rate or floating rate; a loan can also be divided into two, part of the floating rate options, and the other part of the choice of fixed interest rate.
Posted in 
Tags: