202 1 What is the mortgage interest rate?
Starting from March 1, major banks can re-select the interest rate method for existing loan customers, one is based on the original fixed interest rate, and the other is based on LPR.
The first one: convert the mortgage interest rate into a fixed interest rate. According to the regulations, the interest rate level of commercial personal housing loan after conversion should be equal to the latest execution interest rate level of the original contract. According to industry insiders, after choosing a fixed interest rate, the interest rate will no longer rise during the mortgage repayment period.
The second type: switch from the benchmark interest rate to LPR, and select "LPR+ plus point" interest rate. LPR is the quoted interest rate in the loan market. LPR is published once a month, and its contents are constantly changing. This means that if the interest rate of "LPR+ plus plus points" is selected, the future mortgage interest rate will rise or fall with the rise and fall of LPR, and the monthly payment may also become more or less.
Unless the central bank adjusts the benchmark interest rate, the choice of fixed interest rate will be difficult to change. If you choose lpr interest rate, mortgage interest rate =LPR+ plus points. The LPR interest rate is announced on the 20th of each month, so you can work out what your mortgage interest rate is.
For example, you can tell at a glance.
The borrower Xiaoming enjoys a 10% discount on the benchmark loan interest rate when buying a house (down 10%). Loan date 1 August, with a term of 20 years. At present, the benchmark interest rate of five-year loans is 4.9%, and the real interest rate of mortgage loans before conversion is:
4.9%×( 1_ 10%)=4.4 1%
① If Xiaoming chooses to convert to a fixed interest rate, the actual execution interest rate of the mortgage is 4.4 1% until the repayment is completed.