Reported 8 months ago
Amid the surge in new Qing'an home loans, which have become the preferred loan option for first-time homebuyers, the 5-year grace period and 40-year loan term offer the most relaxed payment method in the market. However, calculations by real estate agents show that borrowing 10 million with a 40-year New Qing'an loan without early repayment could result in a total interest payment of up to 5.5 million, equaling a repayment of 15.5 million over 40 years. While these loans are appealing due to the lower monthly payments, delaying the repayment of the principal incurs a significant increase in interest. Borrowers must carefully consider their financial plan and repayment strategies to mitigate financial burdens. Despite the attractiveness of lower interest rates compared to the past, borrowers need to be cautious of the long-term implications of extending loan terms.
Source: YAHOO