Hello, I don't think it is necessary to convert provident fund loans into floating interest rates. After all, the fixed interest rate of provident fund loans is generally low, and there is no need to transfer to floating interest rates. The floating interest rate is not fixed, and there may be higher interest rates, so you can repay at a fixed interest rate.
Fixed interest rate and floating interest rate, according to the actual situation.
According to the previous announcement of the People's Bank of China, the pricing benchmark of the existing floating rate loans was converted into the loan market quotation (LPR). From March 1 day to August 3 1 day, 2020, the borrower can negotiate with the bank on an equal footing to decide whether to change the loan interest rate to LPR (floating interest rate) or fixed interest rate.
Generally speaking, mortgage borrowers will be affected by this conversion, but there are several exceptions: first, the provident fund part of individual housing loans and portfolio loans; Second, fixed interest rate loans; The third is the personal housing loan due before the end of 2020. If one of these three conditions is met, it will not be affected by this conversion.
For the mortgage interest rate level during the share conversion period, the central bank stipulates that the interest rate level will remain unchanged at the time of share conversion. In other words, the personal mortgage interest rate in 2020 is still the same as before. From 202 1 1, if the fixed interest rate is selected, the mortgage interest rate will be the same as the current interest rate for the remaining term, regardless of the change of LPR interest rate; If floating interest rate is selected, the future mortgage interest rate will change with the change of 5-year LPR, and it will be announced once a month, or it will rise or fall or remain unchanged.
Which way is better?
According to industry insiders, the two conversion methods have their own advantages, and the specific choice mainly depends on the mortgage borrower's judgment on the future market interest rate trend:
If we think that LPR will decline in the future, it will be better to refer to LPR pricing instead;
If you think LPR may rise in the future, it will be beneficial to switch to a fixed interest rate.
Stock mortgage borrowers should comprehensively choose the interest rate conversion method suitable for them according to their own situation, as well as the loan price, loan term and loan balance. If the previous mortgage interest rate price concessions are strong and the remaining time of monthly payment is long, you can choose a fixed interest rate, which will not only help to lock in the monthly payment cost, but also facilitate the family's income and expenditure arrangements. If the remaining time of monthly payment is short and the loan balance is not much, floating interest rate may be more suitable.
In the short and medium term, China's interest rate is in a downward trend. It is beneficial for the borrower to change the existing floating interest rate mortgage to LPR as the pricing benchmark and to reduce the borrower's mortgage expenditure. Although it is difficult to judge the trend of long-term interest rates, the downward trend of short-term interest rates is basically known. In addition, even if there is a sharp rise in interest rates that are different from expectations, buyers can avoid interest rate risks by repaying in advance.
Although a number of banks have previously announced that since August 25, individual housing loans that meet the requirements and have not yet been converted into pricing benchmarks will be uniformly adjusted to LPR pricing. A number of banks said in the announcement that the move was carried out with reference to the practice of ordinary banks, with the aim of simplifying customer operations.
However, this does not mean that consumers have no choice. All banks have made it clear that after the batch conversion is completed, if they disagree with the conversion result, they can transfer it back through online banking or mobile banking or negotiate with the loan handling bank before February 3, 2020. It should be noted that the existing banks have made it clear that the cancellation operation can only be handled once.
The reason why banks adopt batch conversion is mainly because most mortgage borrowers are individuals, and the number is large and scattered. Batch conversion can save resources and improve processing efficiency.
The conversion of the pricing benchmark of floating rate loans is conducive to the marketization of interest rates and guides the downward trend of interest rates. The "Monetary Policy Implementation Report for the Second Quarter of 2020" recently released by the central bank pointed out that by the end of June, the conversion progress of stock loan pricing benchmark had reached 55%. Among them, the conversion progress of existing enterprise loans is 76%.
Statistics show that since the reform from 2065438 to August 2009, the quotation level of LPR has gradually declined. In August this year, the reported 1 year LPR and 5-year LPR were 3.85% and 4.65% respectively, which were 0.4 and 0.2 percentage points lower than those since the reform.
Will the mortgage interest rate LpR be cut in 2022? The mortgage rate is 4.9. Why does it cost 5.8 to buy a house?
Needless to say, the importance of mortgage interest rate to buyers. It determines the interest cost of your loan from the bank. At the beginning of 2022, many buyers were very concerned about the latest news of mortgage interest rates. Next, let's take a look at it right away. Will the mortgage interest rate LpR be lowered in 2022? The mortgage rate is 4.9. Why is it 5.8 to buy a house?
Will the mortgage interest rate LpR be lowered in 2022?
In 2022, the 1 year LPR may be lowered, and the 5-year LPR is not expected to be lowered, because at present, the lpr includes 1 year and 5-year lprs, of which 1 year lpr is lowered by 80% by 5 basis points, and 19 months, and the lpr over 5 years remains unchanged at 65%. Such a rate cut means that there may be some loosening of monetary policy, which will reduce the operating costs of enterprises, while the mortgage interest rate of banks remains basically unchanged.
Mortgage interest is usually closely related to the bank loan interest rate. According to relevant national regulations, the loan term of our bank is within 1 year, and its loan interest rate is 4.35%; If our loan term is 1-5 years, then the interest rate of the mortgage is 4.75%; If our loan term exceeds 5 years, the interest rate is 4.9%. You can also choose a provident fund loan to buy a house, and its interest rate is usually lower than that of commercial loans. If the term of the provident fund loan is less than 5 years, the interest rate is 2.75%; The loan term is over 5 years and the interest rate is 3.25%.
The mortgage rate is 4.9. Why does it cost 5.8 to buy a house?
If the mortgage interest rate is 4.9%, but it becomes 5.8% when buying a house, it is estimated that the customer directly regards the annual interest rate of all loans over five years as the mortgage interest rate.
We should know that individual commercial housing loans are not based on the central bank's benchmark interest rate, but on the loan market quotation (LPR). From April 2020 to July 20021year, the price of LPR has remained unchanged, and it has been 4.65% for more than five years.
The basis point stipulated by the bank where the customer can apply for mortgage is 1 15 basis points, so 4.65% plus1/5 basis points (one basis point is equal to 0.0 1%), and the final interest rate is 5.8% (the central bank stipulates that the interest rate of the first personal commercial housing loan shall not be lower than the LPR in the same period.
As for individual housing provident fund loans, although the benchmark interest rate of central bank loans is still implemented, there is a special division of provident fund loans in the benchmark interest rate of central bank loans, and the annual interest rate for five years or more is 3.25% (the interest rate of the second housing provident fund loan is 1. 1 times of the benchmark interest rate, that is, 3.575%).
Will the mortgage interest rate LpR be cut in 2022? The mortgage rate is 4.9. Why is it 5.8 to buy a house? Let's call it a day. According to the market situation, the mortgage interest rate is raised, the transaction volume is reduced, and the house price is falling; The mortgage interest rate is lowered, the transaction volume is rising, and the house price is rising.
Will LPR downgrade affect provident fund loans?
The reduction of LPR will not affect provident fund loans. The interest rate of provident fund loans is fixed, and it has not been linked to LPR at present, so no matter how LPR changes, it will have no impact on customers who apply for provident fund loans.
Although the interest rate of provident fund loans is fixed, compared with the current commercial loan interest rate, provident fund loans are much more favorable, and lenders can really save a lot of interest by applying for provident fund loans. Of course, provident fund loans have strict qualifications for lenders and need to meet some requirements stipulated by the provident fund center.
However, even if the commercial mortgage interest rate is linked to LPR, the reduction of LPR does not necessarily lead to the reduction of mortgage interest rate. First, some lenders choose a fixed interest rate. In this case, the mortgage interest rate will not change.
Secondly, the change of mortgage interest rate has a cycle, and the downward adjustment of LPR is only a factor in the downward adjustment of mortgage interest rate, and the mortgage interest rate will not be raised until a cycle expires. This period is agreed with the bank when the lender applies for a loan, but the shortest period is one year.
Does lpr reduce the provident fund?
The 5-year LPR has been lowered several times, but the interest rate of provident fund loans has not changed. On August 22nd this year, after the latest LPR was released, the 5-year LPR was lowered from 4.45% to 4.3%, down by 15 basis points.
At present, the interest rate of the first home loan in the market has dropped to 4. 1%, which is close to the interest rate of 3.25% for provident fund loans.
I judge that there is a high probability that the interest rate of provident fund loans will be lowered in the coming year. There are two main reasons:
First of all, policy interest rate, market interest rate and LPR interest rate have been declining in the past two years. The interest rate of provident fund loans is not an isolated interest rate, and it is only a matter of time before it is lowered.
Second, the policy is supporting the property market. If the interest rate of provident fund loans is lowered, the support will be greater and the impact will be greater. In the interest rate cut in August, 1 year LPR was 3.65%, down 5 basis points from last month, and 5-year LPR was 4.3%, down 15 basis points from last month. 1 year LPR is called the real economy loan interest rate, and 5-year LPR is called the benchmark mortgage interest rate. This asymmetric interest rate cut in August reflects the country's preference and support for the real estate market.
Therefore, whether in theory or in reality, there is the possibility of lowering the interest rate of provident fund loans.