How to calculate the housing loan after the interest rate cut

1. Under the LPR floating interest rate method, the calculation method of the housing loan after the interest rate cut:

Assuming a house purchase loan of 200,000, repaid in 20 years , that is, repaid in 240 months with equivalent interest, with an additional point of 0.1%. In January 2022, when the benchmark LPR interest rate is 4.6%, the bank loan interest rate will be reduced: the mortgage interest rate is 4.6% + 0.1% =4.7%. Loan = 200000*392%*1.392%*240*1.392%*240*1.392%*240%*1.392%=1,286.99 yuan.

2. Under the fixed interest rate method, the mortgage loan calculation method after the interest rate reduction is:

If the loan is 200,000, repaid in 20 years and 240 months in equal installments, the central bank’s benchmark interest rate will be in 2021 It reaches 4.7% annually, and based on the 10% agreed with the bank, then: the mortgage interest rate is 4.7%*1+10%=5.17%. If in 2022, bank mortgage interest rates will be reduced and the central bank’s benchmark interest rate will not change, then: monthly mortgage loan = 200,000 × 0.431% * 1.431% × 240 × (1.431%^240) = 1,338.77 yuan.

The meaning of LPR floating interest rate

First of all, LPR is a benchmark interest rate in the loan market. It is calculated by the Central Bank through the weighted average of 18 banks on the 20th of each month. Update once, because it is the bank's own quote, and it will be updated every month. The floating interest rate of LPR is calculated based on the original interest rate and the LPR interest rate. The result can be positive or negative.

The meaning of fixed interest rate

The fixed interest rate is determined based on the benchmark interest rate announced by the People's Bank of China. Within a certain range, the bank will fluctuate up and down according to a certain range, generally increasing 10% to 30%.

If the bank cuts the interest rate, will the mortgage interest rate also be cut?

It stands to reason that if the bank lowers the interest rate, then the mortgage loan will get a discount. However, this policy is not adjusted immediately, but once a year. Therefore, those who took out a loan before the interest rate cut will have to wait until the next year.

Can I apply for an interest rate reduction on a mortgage loan

1. Generally, banks will make adjustments to mortgage customers based on the new loan interest rates at the beginning or end of each year;

2. Some banks will adjust the loan term based on the new annual interest rate. Some banks also have clear regulations during the annual interest rate adjustment period. Not every bank is like this. Each branch has different needs. It is recommended that you apply to your lending bank.