Japan Economy, Political, Item News, Fresh and quick source of Japanese Economic news, update hourly.

what kind do you have? About this mortgage

what kind do you have? About this mortgage

9 November 2018 | 3:30 am

In building a house, it is a housing loan that will be a strong ally in terms of finance. However, depending on how you choose it, the future repayment burden will differ greatly. Let’s make a reasonable plan by knowing what kind of mortgage products and interest type there are, so that payment will not put pressure on households. Types of housing loans and interest rates Currently, the main mortgage loans are private finance bank loans, securitized loans flat 35, and public loans, property housing loans. · Bank loan Bank loans can be used in city banks, regional banks and net banks. You can choose the interest type, and characteristic financial guarantees and interest rate benefits etc. are prepared for each financial institution. In addition to banks tied up with real estate companies, it is attractive that you can choose borrowers from a wide range of choices, such as banks with which you are dating from on a regular basis, banks with different loan products you want to combine. Flat 35 Flat 35, which features long-term fixed interest rates of up to 35 years, is a securities product that is also handled by financial institutions such as banks and credit unions, insurance companies, and housing makers. There is also a merit that guarantee fee and advance repayment commission are 0 yen. There are plans such as Flat 20 which can receive low interest loans with repayment of 20 years or less and Flat 35 S which can be used when acquiring high quality housing such as energy saving housing. · Property housing financing Public finance that can be used by persons who are savings is a housing loan. It is a 5-year fixed rate type, and there is a review of the applicable interest rate every 5 years. In order to use it, it is necessary to satisfy conditions such as keeping savings for more than 1 year, savings balance of 500,000 yen or more. Property savings can only be used by employees of companies introducing that system. · Types and characteristics of interest rates Let’s also know the characteristics of each interest rate type that is indispensable for the use of housing loans. Interest type Feature merit Demerit Floating rate type There is a review of interest rates every certain period · If the market interest rate declines after borrowing, the repayment burden becomes small · Repayment simulation is difficult · If the market interest rate rises after borrowing, repayment burden becomes large · If the market interest rate rises sharply after borrowing, there is a possibility of accrued interest Fixed interest rate selection type Interest rate at the time of contract is fixed for a fixed period, and the subsequent interest rate can be selected from fixed and variable · Easy repayment simulation during fixed period · If the market interest rate declines after changing to a floating type, repayment burden becomes small · When the market interest rate rises after changing to the floating type, the repayment burden becomes large Fixed rate type for all periods The interest rate at the time of borrowing is fixed until the repayment end · Since it is possible to grasp the total repayment amount at the time of borrowing, repayment simulation is easy · Even if the market interest rate rises, payment burden does not change · Repayment burden does not change even if market interest rate declines · Interest rate tends to be higher than floating rate How to choose a suitable mortgage When considering which mortgage to choose, it is important to judge comprehensively the interest and repayment amount. Let’s grasp the characteristics of the interest rate type mentioned above and consider what type is suitable for you. For example, if incomes increase in the future, or there is a chance that spending is expected to decrease, we recommend a floating rate type that can cope even if the repayment amount increases due to the rise in market interest rates. Also, if you plan to make a plan such as the school fee for your child and plan on making a plan, the fixed rate type that is easy to set up a repayment plan will be safe. In other words, depending on your circumstances and circumstances, it is important to consider not only the market interest rate at the time of borrowing but also the future life plan. Also, there are items called guarantee fee among various expenses when building a mortgage loan. The guarantee fee is the expenses for the guarantor to repay to the bank on behalf of the guarantor when the obligor can not repay the loan. Although there is a guarantee fee sometimes asked for hundreds of thousands of yen, there is also a loan with no charge guarantee fee. However, because other expenses such as interest rates and commissions may become higher, it is important not to decide by looking at only the initial expenses. I want to know, the back technique of the mortgage · Can down payment be made zero? It is generally said that mortgage loans can receive loans up to about 80 to 90% of property prices. Therefore, it is a place where you want to prepare at least 1 to 20% of down payment. Certainly, some loan products sing zero down payment. However, if you receive a loan with zero down payment, the total amount of borrowing will increase and the burden on the month will also increase, so be careful. It is important to make money plans with plenty of room including not only property prices but also various procedural fees, moving expenses and various expenses related to living in the immediate future. · Increase borrowing amount with a pair loan It is a pair loan that two people living in the same house, such as a couple and parent and child, make a mortgage for each. Each one who satisfies the borrowing conditions becomes a joint guarantor and if one can not repay one, the other will be paid back. Because we are going to have two loans, we can increase the amount of borrowing, and if they both pay income tax, they both benefit from mortgage deductions. · Incidentalities such as group credit life insurance Group credit life insurance is a system that fully repays the outstanding balance of mortgage loans from insurance companies by insurance company in case emergency happens such as death or advanced disability. There are many places where subscription is indispensable for private loans. In addition, mortgage loans with disease protection, including guarantees for chronic diseases including three major diseases , are also increasing. When the obligor becomes a disease covered by the guarantee, it refers to a loan whose mortgage balance is 0 yen based on the doctor’s diagnosis. · Mortgage tax reduction system The mortgage tax reduction system I would like to use without fail when building a mortgage loan. When an individual acquires a new home by home loan or adds or rebuilds it, it is a mechanism whereby 1% of the balance at the end of each year × 10 years is deducted from income tax. Choose by assuming monthly repayment When using a mortgage, it is important not to borrow it but to plan on the basis of how much you need to return every month. Since there are many complicated items such as usage conditions and various expenses, it is good to simulate while talking to the person in charge. 【Recommended article MORIZOU online】 · Long term excellent housing if you build it! What are the standards and tax incentives? · What is land with construction condition? What kind of house can you build? · Flattery popularity is rekindling? The problem how many stories to build home · Tips for observing model houses for ideal housing · I want to leave it at ease, how to choose the type of building company

Leave a Reply