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Buy puzzle: loan terms how to pick the best deal?

buyers to determine the length of the term of the loan is a difficult decision: long term means paying more interest on loans; short period means monthly repayment pressures will be very large. So, loan term you choose is the best deal?  

in determining the loan before the deadline, the first comprehensive consideration to the following questions:

First, consider monthly revenue

for the loans, and bear the pressure of repayment, but should not affect family life as the premise, which need to be considered for months and the proportion of household income. If this percentage is too high, it will reduce other expenditures of the family, thus affecting the normal family life. Monthly household income ratio can lengthen or shorten the loan term to adjust, in General, the monthly maximum should not exceed 40% of the family's monthly income.  

Second, bank loan interest rate differences

Current loan interest rates is like this: under 6 months, the interest rate is 5.6%; 6 months to 1 year, the interest rate is 6%; 1-3 years, the interest rate is 6.15%; from 3 years to 5 years, interest rate of 6.4%; 5 to 30 years, the interest rate is 6.55%. As you can see, short-term lending rates vary significantly, and 3 year loan interest rate change is not large, we can be selected according to their own needs.

three, consider the advantages and disadvantages of the length of the loan term

loan term is shorter, Less interest, repayment pressure increases. If the loan period is too short, directly using the full amount to buy a House, because for all homeowners to buy, typically will give its buyers discount.

longer loan terms, the more interest you'll pay more, but pressure of monthly payments reduced. In addition, some experts suggested that the term should try to choose the longest, because mortgages much lower interest rate than other loans, cash-rich and have a willingness to invest in people, invest can borrow long-term loans, earn excess returns.

in summary, for a loan, how to choose the most suitable buyers should proceed from their specific situations to consider, not blindly or is that sentence--for their own is the best.

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