The interest rate of 5.88 must be converted into LPR. Stock mortgage must be converted into LPR. As for the conversion to LPR fixed interest rate or LPR floating interest rate, users can choose by themselves. If the user's interest rate of 5.88 is converted into LPR, the interest rate in the first year is 5.88. As for whether the interest rate will be adjusted later, it depends on whether the LPR is adjusted and whether the user has chosen a floating interest rate.

Users can choose LPR floating interest rate or LPR fixed interest rate. The two interest rate models have their own advantages and disadvantages, and we can't say which one is better.

The loan interest rate of China Construction Bank is 5.88%. I don't know whether it is high or low. Do you want to convert it?

5.88 is a higher interest rate. If lpr continues to decline in the future, it will be more cost-effective to convert the mortgage interest rate into reference lpr pricing. If lpr is raised in the future, it will be more unfavorable to change the mortgage interest rate to reference lpr pricing. At present, LPR has a high probability of going downhill. Unless there is inflation, once inflation exceeds expectations, LPR will inevitably rise, and the mortgage interest rate will also rise accordingly.

If losing money is a risk and making money is an opportunity, then the summary is to choose a fixed interest rate, and the risk is greater than the opportunity, while choosing LPR interest rate, the opportunity is greater than the risk.

Although it is more cost-effective to convert the mortgage interest rate into lpr, it is mainly determined according to the increase or decrease of lpr, but the loan time is also more important.

If the mortgage is 10 years, the interest rate is 30% off the benchmark interest rate. Then before the conversion, the benchmark interest rate of the loan is 4.9%, and the actual interest rate after 30% discount is 3.43%. If the borrower chooses to convert to a fixed interest rate, the interest rate of the mortgage will be 3.43% during the remaining term of the contract.

After the conversion to lpr, the actual execution interest rate of the loan is still 3.43%, but the interest rate pricing method is changed to add points on the basis of lpr. That is to say, if the borrower chooses to convert to lpr, the mortgage interest rate for more than five years will be determined according to LPR- 1.37%, of which the converted loan with a term of 10 is 19.

In other words, if lpr continues to decline in the future, it will be more cost-effective to convert the mortgage interest rate into reference lpr pricing. If lpr is raised in the future, it will be more unfavorable to change the mortgage interest rate to reference lpr pricing.

Extended data:

LPR is a market-oriented interest rate, which fluctuates with market changes. At present, it is based on the same quotation of 18 banks, excluding the highest price and the lowest price, and then taking the average. Its interest rate is updated and changed on the 20th of each month. Once LPR is implemented, the interest rate mechanism of commercial bank loan market can be further improved, and the level of mortgage interest rate is determined by the market.

Originally, our mortgage interest rate fluctuated based on the benchmark interest rate of the central bank. The central bank designated the loan guidance interest rate, which corresponds to the economy of all walks of life, not just real estate, and is fixed for a certain period of time. If lpr continues to decline in the future, it will be more cost-effective to convert the mortgage interest rate into reference lpr pricing.

5.88 Do you want to transfer the LPR interest rate?

The mortgage interest rate of 5.88 should be converted into LPR floating interest rate.

1 and the LPR in April 2020 was 4.65%. After changing to white, the monthly supply can be reduced. Judging from the trend of operating the market in recent years and the overall economic trend of Duyun, the interest rate shows a downward trend, and it is more cost-effective to switch to LPR. Of course, once selected, it cannot be changed, and interest rates will be at risk of rising for a long time to come.

There are two options: the original repayment method is "benchmark interest rate+floating interest rate", with the benchmark interest rate variable and the floating interest rate unchanged; The new repayment method is "loan market quotation (LPR) plus floating point", with variable loan interest rate and unchanged floating point.

2. According to Announcement [20 19] No.30 of the People's Bank of China, the interest rate of individual housing loans remains unchanged before and after the restructuring. According to the new option, the interest rate should be expressed as LPR+ floating point. After the first repricing date, the mortgage interest rate is the same as the original interest rate; From the first repricing date, the mortgage interest rate will become "the floating point with the latest LPR+ term exceeding 5 years"; And so on, on each subsequent repricing date.

The mortgage is paid off in five years, and the current loan interest rate is 5.88. Is it necessary to change the RPR interest rate?

No need, if there is no ups and downs, it is not recommended to transfer.

Housing loan, also known as housing mortgage loan, is an application form for housing mortgage loan, ID card, income certificate, housing sales contract, guarantee and other legal documents filled out by the buyer to the loan bank. , must be submitted. After passing the examination, the loan bank promises the loan to the buyer, and handles the real estate mortgage registration and notarization according to the house sales contract provided by the buyer and the mortgage loan contract concluded between the bank and the buyer. The bank directly transfers the loan funds to the sales unit within the time limit stipulated in the contract.

The longest loan period is not more than 30 years, and the second-hand housing provident fund loan is not more than 15 years; The loan amount is 70% of the appraised value of the house; The loan interest rate shall be implemented according to the loan interest rate of the same grade in the same period stipulated by the People's Bank of China, and the benchmark annual interest rate shall change according to the loan term. The following is the latest loan interest rate table of 20 13 (the interest rates of banks have risen according to the housing situation).