What's the difference between installment payment and mortgage loan?

1. Generally, the installment period does not exceed 1 year, and the object of installment repayment submission and modification is the developer, and no interest is paid; The mortgage is not only long-term, but also the repayment target is the bank, which has to pay interest;

2. Mortgage, specifically, mortgage loan refers to the loan obtained by the buyer from the bank with the purchased house as collateral, and the buyer pays the bank in installments according to the repayment method and time limit agreed in the mortgage contract; Banks charge interest at a certain rate. If the lender defaults, the bank has the right to take away the house.

3. Installment requires money, which is equivalent to one-time payment, but there is a time difference and no interest; You only need to pay 20%-30% of the total mortgage loan, and the rest of the loan has high interest and low capital requirements.

Installment payment operation

1. Under normal circumstances, the operation method of buying a house by stages is, for example, a down payment of 200,000 yuan for the house. And buyers can split this 200,000 yuan into two or three times and pay it to the developer in installments. Buyers don't need to pay interest, and they don't need to pay several interest.

2. Down payment by installment. With regard to "down payment by installment", the developer mainly has two modes of operation: first, after the buyer pays part of the down payment, the developer pays off the remaining down payment for the buyer, the buyer signs a loan contract with the bank, and then the buyer returns the remaining down payment to the developer at the agreed time. In other words, the developer first lends the money to the buyers and gives it to the bank to handle the loan procedures.

The concept of installment payment

Installment payment, as the name implies, is to pay the total house price separately. If you pay part of the house price in advance, you can get the right to use the house and move in, and the rest will be paid off year by year within the prescribed time limit.

It takes a lot of money to buy a house, and it is difficult to get enough in a short time, so many house purchase transactions adopt installment payment. Buying a house by installment is a price settlement method of housing credit sales business, which is widely used in housing sales.

The concept of mortgage loan

Mortgage loan is a kind of mortgage loan, which means that the mortgagor transfers the property right of the real estate to the mortgage beneficiary (bank) as a repayment guarantee, and after repayment, the mortgage beneficiary transfers the property right of the real estate back to the mortgagor.

Generally speaking, buyers will mortgage their houses to the bank as collateral, so as to obtain bank loans, and buyers will pay the bank in installments according to the repayment method and time limit agreed in the mortgage contract; Banks charge interest at a certain rate. Under normal circumstances, overdue repayment has nothing to do with the developer.