From March 2020 1, friends who used to buy a house and apply for a mortgage will have to sign a loan contract with a commercial bank again. When signing a new contract, we need to consider converting the loan interest rate into LPR interest rate or fixed interest rate, which is the conversion of personal loan pricing benchmark. In principle, it should be completed before August 3, 20201.

Before we applied for a loan, we needed to refer to the benchmark interest rate of the loan. Since last year, the loan interest rate will refer to the LPR interest rate, because LPR is closer to the actual market situation.

Using LPR pricing benchmark means that our actual loan interest rate is all based on LPR, that is, the latest LPR mortgage interest rate standard is LPR interest rate+floating point. Because the benchmark loan interest rate has been discounted before, the LPR bonus item may be negative this time.

For example, you used to enjoy a 20% loan interest rate. According to the latest benchmark loan interest rate of 4.9%, your actual loan interest rate is 3.92%. Then, when converting the personal loan pricing benchmark, refer to 2065438+4.8% of LPR pricing interest rate in February 2009, and your bonus will be -0.88%.

Of course, in this kind of personal loan pricing benchmark conversion, you can also choose to convert to a fixed interest rate, that is, according to the latest contract interest rate and fixed.

So when the personal loan pricing benchmark is converted, what is better to choose?

Choosing LPR pricing benchmark interest rate or fixed interest rate varies from person to person, because interest rates in different cities and banks are different, depending on which situation you are suitable for.

Because both the average capital and the equal principal and interest are repaid with more interest and less capital at the beginning, and the intermediate principal of the loan is greater than the interest at the latest, it is more appropriate to choose LPR, because LPR will lead to a downward interest rate in the short term and you can enjoy the discount of lower loan interest rate.

If you bought a house in the last two years, then the high probability is that you can only choose the LPR pricing benchmark to determine the mortgage interest rate.

Finally, I would like to remind you that you can negotiate with the bank to float the floating point up and down. When setting the loan interest rate, banks can freely float on the basis of LPR according to the capital cost, customer's credit premium and term risk premium. I suggest you try to choose a bank with less points to lend.