For most of human history, borrowing money was a despicable act. Shakespeare’s “Hamlet”, there is a courtier on his son’s departure instructions, which repeatedly told him not to borrow money, neither to borrow money from others, nor to lend money to others. In fact, this is also a principle that we Chinese have abided by for a long time. Even in some periods, they boasted that the country at that time had neither domestic debt nor foreign debt. In the face of all other countries, they seemed to have a transcendent sense of superiority. Until Vice Premier Gu Mu’s report on his visit to Europe in 78, he finally woke up the high-level officials who had been sleeping in the dream of “independence and self-reliance” for a long time, and understood the leverage of borrowing and lending, as well as the huge dividend of advanced technology and advanced management experience of other countries. So the country finally embarked on the road of reform and opening up.
Although our home buyers already know the benefits of loans, there are still a lot of people who spend all they have and pay a lot of down payment when they buy a house, so that for quite a long time, the Chinese house is almost empty, dancing to find out what it looks like in the world. So how much of the down payment is more appropriate? Here are the following factors to consider.
First, the 20% principle. Because our housing loans are in kind loans with the real estate itself as the collateral, that is to say, when you do not repay the loan, even if your family has “five flower horse, thousand gold fur”, the bank can only turn a blind eye, helpless, can only take your mortgage house to auction. So the bank’s risk is whether the property will be enough to repay you after the auction when you can’t pay the loan. So the 20% principle should be born. That is, if your down payment is less than 20%, then the lending bank must let you buy a loan insurance, which guarantees that once the bank fails to repay its debts after the auction, the loss will be borne by this insurance to ensure that the bank is intact. So as a borrower, if you can pay 20%, you will save the loan insurance. The amount of money varies from tens to hundreds every month, depending on the house price, your credit and many other factors.
Second, the principle of super large loans. The housing market is a pyramid. The more expensive the luxury houses are, the less demand they have, and the harder it is to sell them. So the more expensive the house is, the harder it is to get her actual price. Therefore, banks have a warning line on the amount of loans. Beyond this line, you have to pay a high interest rate to offset the risk of super large loans. In the past, there was only one line – $450000. That is to say, when your loan exceeds it, your interest rate will increase a lot. With the rising of house prices, some banks have slightly increased this line, and they have been adjusting upward in recent years.
Third, the principle of investment in housing. The Dafu area is a rare place for housing investment in the United States. First, the price is low; second, it is easy to rent; third, the rate of return is high; fourth, the housing market is quite stable. So that not only investors from all over the United States, but also international real estate developers. Dallas’s investment housing loans are particularly leveraged. Because the rate of return here is usually more than 5%, while the loan interest rate is about 4%, so as far as investment housing is concerned, more loans are more cost-effective. However, the risk of investment housing loan is significantly higher than that of self housing, so the general banks set the loan ceiling of investment housing at 75%. So for investors, 75% loan is the best strategy.
Allowing refinancing is the most affordable policy for us in the free economy of the United States. It is a derivative that allows early repayment of the loan. That is to say, when your loan is not paid off, as long as the interest rate outside has dropped by a considerable margin, you can borrow money with low interest rate from other banks, and then pay off the loan of the front bank in advance. Convert to lower interest rate loans to new banks. Your payment is just like the change of “an inch of gold” by the monkey king — immediately lose weight, instantly slim. Of course, there are always corresponding fees for loans. Whether the fees are removed or not and how to remove them still need to be customized by professional loan experts.
There are many specific situations and coping skills of Superrateinc. Our senior loan officers are willing to provide you with the most professional services.