Personal mortgage will be converted into LPR interest rate, which has the advantage that the interest rate is more flexible, and the level of LPR interest rate depends on the future trend of LPR. If the overall LPR shows a downward trend, it is more favorable to choose the pricing method with reference to LPR. In the context of the current reduction of financing costs in the real economy, there is still room for LPR to go down. It is suggested that mortgage customers choose to switch to LPR pricing.

LPR is in the downward period, and choosing LPR pricing method will reduce the cost of mortgage; However, once the economy is in an upward cycle and inflationary pressure rises, LPR interest rates will also rise. Therefore, there is interest rate risk when choosing the reference LPR pricing method.

Extended data:

When converted into LPR plus floating interest rate, the positive value is equal to the difference between the current interest rate level of the original contract and the corresponding term LPR published in February 20 19;

Namely: bonus value = current interest rate level of customers-2065438+LPR released in February 2009. In addition, the bonus value can be negative, and it is fixed during the remaining period of the contract. If the loan term of the original contract is five years or less, refer to the one-year LPR；; ; If the loan term of the original contract is more than five years, refer to the LPR with a term of more than five years.

People's Network-How to link the future interest rate of LPR with stock mortgage loan?