Financial institutions convert the interest rate pricing method agreed in the original contract into LPR as the pricing benchmark and add points (the points can be negative), which can be fixed or converted into fixed interest rates during the remaining period of the contract.

According to the requirements of China People's Bank, customers can choose to switch to LPR floating mode or fixed interest rate mode, but only once. If the customer thinks that the interest rate will fall in the future, he can choose the LPR floating mode, and if the customer thinks that the interest rate will rise in the future, he can choose the fixed interest rate mode.

For example, if the customer's current personal mortgage interest rate is 10% off the benchmark interest rate for five-year loans, then the actual interest rate level is 4.9% (benchmark interest rate for five-year loans) × 0.9 = 4.4 1%. If you choose to switch to a fixed interest rate, then no matter how the LPR interest rate changes in the future, the personal mortgage will carry out the interest rate of 4.45438+0% during the remaining period of the contract.

If you choose to switch to reference LPR pricing, the personal mortgage interest rate will be determined as LPR+-0.39% (4.4 1%-4.8%) according to the 4.8% LPR quotation published in February 20 19, in which -0.39 is the fixed-point spread, which will be calculated on the future re-pricing date.

Extended data

Zheng Dayuan, a veteran of the mortgage industry, pointed out that there is a saying in the market recently that if you enjoyed the discount of the benchmark interest rate before, it would not be cost-effective; If the benchmark interest rate had gone up before, it would have been a good deal. This is a misunderstanding, because if we switch to LPR pricing, as long as LPR falls, it will be cost-effective, while LPR rises, it will not be cost-effective. "This mainly depends on your judgment on the future trend of LPR." Zheng Dayuan said.

Affected by the downward adjustment of the five-year LPR quotation on February 20th, in March, the interest rate of the first home loan in 30 cities was lowered month-on-month, and the decline rate in 8 cities was above 10BP. Among them, the average interest rate of the first home loan in Guangzhou has also been lowered. Analysts predict that the overall level of the national mortgage interest rate will still show a downward trend, but it may be relatively flat in the short term.

People's Daily Online-The full moon of mortgage pricing benchmark conversion is still waiting to be seen.