TYPES OF BANK CAPITAL TO BUY A HOUSE YOU SHOULD KNOW

The very familiar saying of grandparents often taught that is to settle down and then lose a job. Finding a source of capital at a bank to borrow is a choice many people choose to buy a house. So, how is the form of a bank loan to buy a house, do you know or not?

Housing is not easy if you choose to live in the city

Not only in Ho Chi Minh City but in any city, real estate in these locations is quite expensive, if you do not have money in hand, it is difficult to reach. Therefore, the dream of buying a house in the city to settle down and settle down is only a dream for low-income families.

How much money in hand can you buy a house in Saigon, whether the bank lends you money, is the procedure cumbersome and strict, the forms of bank loan to buy a house, the interest rate? Bank loans to buy a house, how to pay, ... are issues that many people are interested in.

Currently, in order to provide the keys to families who do not yet qualify for immediate housing, the bank has launched two forms of home loan for homebuyers to choose from. As follows:

Installment loan and calculate interest in the form of initial loan balance

The form of a bank loan to buy a house according to the initial balance means that every month, the borrower is required to pay the lending bank a fixed amount of principal plus interest at a fixed interest rate that the borrower has agreed to. prior agreement with the bank during the loan process.

For the monthly interest is always calculated on the total original outstanding balance. The advantage of the form of calculating interest according to the initial loan balance is that the interest rate is fixed, the borrower is not afraid of fluctuations due to the adjustment of the bank.

Installment loans and calculate interest in the form of reducing balance

The form of a bank loan to buy a house on a reducing balance means that the borrower needs to pay an equal part of the principal, and the interest rate on this home loan will be calculated on the actual amount. owed to the bank.

According to real estate experts, the advantage of this form is in the way of calculating interest. Specifically, the amount of monthly interest payable will gradually decrease as the original principal decreases. But the interest rate applied to this form will be changed (usually with an upward direction) periodically from 6-12 months based on the agreement of the customer and the previous lending bank.

There are two types of bank loans to buy a house and the way to calculate the interest rate for a home loan is different. The first form has a fixed interest rate and the second method has a variable interest rate according to the market.

So what is the right form of bank loan to buy a house?

As explained above, the interest rate on a home loan from a bank in each form is different, in order to choose for themselves the appropriate form of loan and interest payment, the borrower needs to determine the familys income range before buying a house. decision.

There are two options as follows:

If you determine that your monthly income is constant, you should borrow in the form of interest calculation according to the original balance. Because, the fixed principal and interest during the loan period will help you be financially proactive. This case is suitable for those who are working as state employees, people with stable income such as teachers, doctors, officers, ...

As for those with unstable income, you should choose a home loan from a bank according to the gradually decreasing balance, to help reduce financial pressure for you in the following years.

Homebuyers are not only interested in loan forms and procedures, but also worry a lot about the interest rate factor on home loans. Therefore, we hope that, with the sharing about the form of bank loan to buy a house as well as the interest rate factor above, it will partly provide the necessary information for you to grasp and make the best decision. Wish you always own a wonderful living space with the house of your dreams.