Apply for a mortgage loan when buying a house, saying that the interest rate is the market interest rate plus 40bp, with reference to the floating interest rate, and the benchmark interest rate plus 40 points.
Floating interest rate, fixed interest rate.
According to the previous announcement, the pricing benchmark of floating rate loans will be converted into 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 conversion period, the interest rate level at the conversion point remains unchanged. 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, 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.
How to choose a more cost-effective mortgage interest rate change? what do you think?
Since March 2020, the personal mortgage interest rate has been converted, and users have two choices, namely LPR interest rate or fixed interest rate. So why does the central bank want consumers to convert loan interest rates? How to choose more cost-effective when changing? Have you noticed?
According to the requirements of the People's Bank of China, starting from March 1, financial institutions will negotiate the conversion terms of pricing benchmark for existing floating rate loan customers and change the loan interest rate method agreed in the original contract. The main reason for this change is that the benchmark loan interest rate remains unchanged, and LPR has dropped many times to reflect the changes in market interest rates in a timely manner.
So how should users choose when converting? Which is more cost-effective? In fact, the People's Bank of China claims that these two conversion methods have certain advantages and need to be selected according to their own actual conditions, and the most important thing is to decide according to the future interest rate trend.
In the future, if the loan interest rate LPR drops, it is best to refer to LPR pricing when converting. If the LPR interest rate will rise, it is best to convert it into a fixed interest rate. If users enjoy a discount when handling loans, such as 20% or 10% discount, many people suggest choosing a fixed interest rate.
Previously, the benchmark loan interest rate for users to apply for mortgages was 4.9%. If the user enjoys a 10% discount on the loan, the actual loan interest rate is 4.4 1%. If the user chooses fixed, the loan interest rate will remain unchanged during the remaining repayment period, and the monthly repayment amount of the user will remain unchanged.
If the user thinks that the LPR interest rate will drop in the future, the loan interest rate of 4.4 1% will be converted according to the difference between the current actual execution interest rate (4.4 1%) and the five-year LPR of 20 19+02 (4.8%), and the user's calculation method will become "LPR-".
How to adjust the bank mortgage interest rate?
It depends on the date of interest rate adjustment in the loan contract. Generally speaking, it is agreed to adjust the interest rate once a year, and the interest rate is adjusted once a year at 65438+1October 2 1. Even if we cut interest rates now, we will have to wait until next year, 1, 2 1. Adjust the interest rate through application. The adjustment methods of mortgage interest rate application are: 1. It is the newly adjusted loan interest rate at the beginning of the following year after the adjustment of the bank interest rate. 2. Annual adjustment, that is, every year of repayment, the new interest rate is adjusted and implemented. 3. Both parties agree that the new interest rate level will generally be implemented in the month after the bank's interest rate adjustment. Legal analysis: Wait until the interest rate repricing date, and implement the new interest rate according to the new LPR. Legal Basis: Ten Provisions of the People's Bank of China on Prohibiting Raising the Interest Rate of Deposits and Loans without authorization or in disguise Article 1 The interest rate approved and authorized by the People's Bank of China in the State Council is the legal interest rate and has legal effect, and no other unit or individual has the right to set or change it. The announcement and implementation of the statutory interest rate shall be the responsibility of the head office of the People's Bank of China. How to adjust the interest rate every year and re-price the mortgage?
When your bank of China loan interest rate fluctuates, the loan interest rate will be adjusted according to the contract. The repricing date is the interest rate adjustment date agreed with the bank. The repricing cycle refers to the frequency of adjusting interest rates from the next repricing date.
For example, if your mortgage is converted into LPR, the repricing period is 12 months, and the next repricing date is 65438+ 10 month 1 day, then your mortgage will be recalculated according to the LPR value of the corresponding period in June 2020. Until June 2022, 65438+1 October1,your mortgage interest rate will be recalculated according to the LPR value of the corresponding period in June 20261+February.
If you have any questions, please consult the loan processing branch of Bank of China in detail.
The above contents are for your reference. Please refer to the actual business regulations.
If you have any questions, please contact online customer service of Bank of China.
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