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Posts Tagged ‘mortgage products’

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. Read the rest of this entry »

Successive fixed-rate mortgage interest rates appear attractive to many people already want to apply for mortgages on hand turned into floating-rate fixed-rate mortgage products. It is reported that cross-bank apply for the “float switch” need to charge a fixed fee, the Bank is not charged.

China Everbright, China Construction Bank raised the interest rate fixed loans

Currently, China Merchants Bank, Agricultural Bank of China, Everbright Bank of China, CITIC and other commercial banks have launched a fixed-rate mortgage business, May 19, after the central bank announced the rate hike, banks lending products one after another on a certain fixed adjustments.

It is understood, construction, and other parts of China Everbright Bank has recently increased the types of mortgage products, fixed base rate, other banks will also be adjusted accordingly fixed interest rate loan product.

In addition, the Bank of China and other banks in the fixed-rate mortgage business from May 19 to suspend processing since, after plans to introduce a new fixed-rate mortgage policy.

Industry insiders estimate that there is some time to come up room rates. In this case, a fixed-rate mortgage loans to people who buy a house one of the most economical choice.

Mortgage interest rates increase the cost of

Zhang last year by the end of April, the China Everbright Bank to apply a 10-year total of 500,000 yuan of fixed-rate mortgage products, benchmark interest rate of 6.18%, but because of your credit situation is better received 6.08% of prime rate. Individuals over the same period the central bank benchmark floating rate loans by 6.3%, compared with Mr. Zhang to enjoy the real interest rate loans was 0.22% higher.

After several interest rates, individual housing loans of one to three years, three to five years, more than five years of the benchmark rate is now 6.75%, respectively, 6.93% and 7.2%. Compared with a year ago, 10-year floating-rate mortgages increased by nearly 1 percentage point, while the group’s 10-year fixed-rate mortgages also increased the prime rate to 6.18%, an increase of 0.1%. But before with fixed-rate mortgage, Mr. Chang, still can follow the original 6.08% interest rate to pay the mortgage, and compared to the current range of mortgage products, no doubt save a lot of interest. Read the rest of this entry »

Mr. Jiang in early 2006 a set of high-grade residential mortgage loans of 50 million, 20-year loan period. Buy a house later, Mr. Jiang has experienced four rate hikes, from the initial 6.12% annual interest rate soared to 7.20% today, a month to more than the original interest rate was also 300 Yuyuan Li. Now mention of this matter, Mr. Jiang has not regretted his choice on the “fixed-rate mortgage products.

Since 2006, the central bank has been raising interest rates four times, many home buyers have people turn their attention to various commercial banks 推出 “fixed interest rate home loans. But the banks financial experts suggest that not all home buyers are suitable for the mortgage products, young people, investors and loan customers will need more careful selection.

In general, the standard fixed-rate mortgages are generally interest rate benchmark rate than the current number of mortgages in the early repayment, the repayment amount will be higher than the repayment of the amount of floating rate mortgages higher, so for those who currently economic strain, while the expected return better future for young people, floating-rate mortgage products may be more suitable.

Real estate investors are not suitable for the mortgage product. For them, perhaps a few years, the house will be sold out, but because buyers have to choose the initial fixed-rate and affordable housing more available, it will obviously increase the cost of the investment. Even those who support credit rental property investors do not need to select “fixed-rate mortgage because the mortgage interest of ups and downs, often reflects the rise and fall of the market also means that under the rent income was floating. With fixed interest rates their monthly costs, “locked, not having the rental income and its changes with fluctuations.

In addition, the loan amount larger customers in the selection of the business also requires caution. Most fixed-rate loans have a term of 3 years, 5 years, the longest 10 years, however, these repayment period relative to the loan balance is increasing, too short, then calculate the monthly repayment amount will be far beyond the scope of ordinary customers to bear. For them, it is best to take a fixed rate and floating rate combination.

With the fifth time the central bank raise interest rates become a reality, the market entry rate hike cycle.

For lenders, the principal and interest from the matching, equal principal repayment method, the fixed-rate mortgage, for bi-weekly, revolving loan, with the use as also other, how dazzling custom mortgage products for their own financial plan become an integral future life plans. Then, the rate hike cycle in which loans can be chosen to do their own decompression?

Everbright Bank official told reporters that related, if you have applied for bank loans, interest rates are unwilling because of increases take on additional loans for house purchase costs, then only two ways to make his own interest paid to banks maintained or Lue higher than the interest rate increase before the number, one through the early repayment of loans to avoid paying more interest on bank loans, of course, this requires a lot of idle funds in hand. Second, by converting to fixed-rate loans to bind to the lending rates in the future period of time the interest rate will not increase with the increase.

This reporter learned that, at present in Beijing Everbright Bank and China Construction Bank can only provide fixed rate loans, in the interest rate hikes, Everbright has raised the fixed rate level, but still below the benchmark interest rate, while the bank is currently not yet published Zuixin solid Loan interest rates. So, fixed-rate loans how much interest it can be saved? Bank calculations of the responsible person, the amount of three million yuan loan, the calculation period of 10 years, with equal payment method, after the central bank raise interest rates four times over, if you choose a fixed interest rate the lender will be able to save about 180 000 element of interest. Read the rest of this entry »