Core Insights - The real estate market is stabilizing in 2025, making home buying a popular choice for many families, despite the financial pressures associated with mortgage payments [1][3] - The average mortgage loan amount for residents has reached 763,000 yuan, a 5.2% increase from the previous year, indicating a growing reliance on loans for home purchases [3] Mortgage Calculation - For a property valued at 1 million yuan with a minimum down payment of 150,000 yuan, the loan amount would be 850,000 yuan [3] - The People's Bank of China has lowered the benchmark interest rate for first-time home loans to 3.0%, down 0.3 percentage points from 2024, which significantly impacts long-term mortgage payments [3][4] Repayment Methods - Under the equal principal and interest repayment method, the monthly payment for a 30-year loan at 3.0% interest would be approximately 3,582 yuan, with over 78% of borrowers preferring this method for its stable payments [6][9] - The equal principal repayment method starts with a first-month payment of approximately 4,486 yuan, decreasing to about 2,367 yuan in the final month, resulting in total interest savings of approximately 55,980 yuan, or 12.7% less than the equal principal and interest method [8][9] Loan Term Impact - The monthly payment for a 20-year equal principal and interest loan would be around 4,721 yuan, while a 10-year loan would require a monthly payment of 8,227 yuan, highlighting the trade-off between loan term length and monthly payment pressure [8][9] - A 0.5 percentage point increase in interest rates to 3.5% would raise the monthly payment for a 30-year equal principal and interest loan to 3,912 yuan, increasing total interest payments significantly [8][9] Decision Factors - Factors influencing home buying decisions include personal credit history, down payment ratio, family income, property appreciation potential, and the timing of the purchase [9] - The recommended approach for a 1 million yuan property is to opt for a 30-year loan with equal principal and interest repayment to minimize monthly payment pressure while actively seeking lower interest rates [9]