How to calculate the mortgage interest rate?
1. Generally, compound interest is calculated on a monthly basis. Compound interest means that after the end of each interest period, the remaining interest will be added to the principal to calculate the interest of the next period. In this way, in each interest-bearing period, the interest of the previous interest-bearing period will become the interest-bearing principal, that is, interest will accrue at interest, which is also commonly known as "rolling interest".
2. There are two ways to repay by installments, one is equal principal and interest, and the other is average capital. Due to different repayment methods, the monthly loan interest is also different. But no matter what kind of loan method, there is a unified calculation standard for bank loan interest.
3. Calculation formula of loan interest; Daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰) ÷ 30; Monthly interest rate (‰) = annual interest rate (%) ÷12; Current month loan interest = remaining principal of last month * monthly loan interest rate; Principal paid in the current month = repayment amount in the current month-loan interest in the current month; Last month's remaining principal = total loan-accumulated repaid principal.
What's the difference between lpr and benchmark interest rate?
The difference between LPR and benchmark interest rate is that LPR is the quoted interest rate in the loan market and benchmark interest rate is the reference interest rate in the financial market; The role of LPR is to guide the pricing of products in the credit market, and the role of benchmark interest rate is to help form an interest rate marketization mechanism; LPR has a high degree of marketization, and the benchmark interest rate has a low degree of marketization, each with its own characteristics.
In daily life, mortgage refers to LPR, while other loans refer to the benchmark interest rate. It can be seen that the benchmark interest rate is more widely used, so the interest rate range of the benchmark interest rate is also larger than LPR. There are three kinds of benchmark interest rates: 1 year (inclusive), 1 year to 5 years (inclusive) and more than 5 years. LPR is only 1 year LPR and more than 5 years LPR.
Of course, LPR and benchmark interest rate are both reference interest rates, and the actual loan interest rate will be higher than these two interest rates. The mortgage interest rate adopts LPR+ basis point model, and other loans directly rise according to the benchmark interest rate to determine the final loan interest rate.