Personal mortgage is converted into LPR interest rate, and LPR pricing is cost-effective for lenders with high interest rates. Under LPR mechanism, the mortgage interest rate is determined by LPR plus point method, and LPR will fluctuate with MLF interest rate, so the mortgage interest rate under LPR mechanism will change from the original fixed interest rate system to floating interest rate.

For individual lenders, if the current loan interest rate is not high, such as only 3% and 4%, then it is best to choose a fixed interest rate, because it may not drop to that low in the future. But if the interest rate approaches 5%, let it fluctuate.

Extended data:

Individuals calculate the loan interest rate of LPR according to the plus or minus point of LPR price quoted by the bank, that is, LPR interest rate+fixed spread (which can be negative). The biggest difference between LPR mortgage interest rate and before is a "dynamic" and a "static". In the past, the mortgage interest rate was completely determined by the central bank's quotation. The central bank's quotation moved and the loan interest rate changed again.

Generally, the loan term is relatively long, which may be around 15 years. In such a long period, the interest rate itself has a cycle of rising and falling, and the final rising and falling may offset each other, so borrowers need not be overly nervous and anxious.

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