The interest rates of home loans vary according to the loan term, and the interest rates of the loans also vary. The interest rate of a mortgage generally refers to the annual interest, and the interest rate generally refers to the monthly interest. It is calculated based on the five-year mortgage interest rate of 6: the annual interest rate is 6, and the monthly interest rate is 6/12=0.5, which is often said among the people. 5% interest.

In short, the folk interest rate refers to the monthly interest rate of a few tenths of a percent, and the annual interest rate is multiplied by 12 on the basis of the monthly interest rate. Users can convert based on the interest rate of the specific mortgage.

Is the mortgage interest rate an annual interest rate?

The mortgage interest rate is an annual interest rate, because the minimum loan term of a mortgage is 1 year and the maximum is 30 years. A mortgage interest rate will be stipulated in the mortgage contract. If the user chooses a fixed interest rate, the mortgage interest rate will not change during the entire loan period. If the user chooses a floating interest rate, when the LPR adjusts, the mortgage interest rate will also adjust accordingly.

Therefore, the mortgage interest rate exists in the form of an annual interest rate. When the user chooses the floating interest rate mode, it will even be adjusted once a year, but the prerequisite is that the LPR in December of the previous year has changed.

Are the mortgage interest rates the same for every bank?

The mortgage interest rates for each bank may be different.

Although the central bank sets the benchmark loan interest rate and the LPR interest rate, due to different policies and different market conditions in various places, the mortgage interest rates may be different in various places. And different banks in the same city will have different mortgage interest rates. After all, banks need to take their own circumstances into consideration.

It is precisely because the mortgage interest rates are affected by many factors that the mortgage interest rates vary from place to place and from bank to bank. If you want to know the specific mortgage interest rate, it is recommended to consult the staff of the loan bank.

Everyone also needs to note that after a borrower signs a loan contract, it does not mean that subsequent repayments will be based on the mortgage interest rate at the time of signing.

Because the contract signed by most people stipulates a floating interest rate, so if the mortgage interest rate fluctuates later, the borrower will have to repay according to the floating mortgage interest rate when repaying. The repayment amount may also vary. Of course, if the interest rate is fixed when the contract is signed, there will be no change.