① After the bank's interest rate is adjusted, the newly adjusted interest rate will be implemented at the beginning of the following year.
② Annual adjustment, that is, the new interest rate will be adjusted and implemented every year after repayment. This mainly depends on when the repricing date of our mortgage is.
③ Both parties agreed that the new interest rate level will generally be implemented in the month after the adjustment of bank interest rate.
Therefore, when applying for a loan and signing a contract, we need to pay attention to how the loan interest rate is calculated.
Will interest rate cuts reduce mortgage interest?
If you apply for a loan to buy a house, buyers need to pay a certain amount of interest, which will be calculated according to the interest rate, loan amount and years. If the interest rate is reduced, the mortgage interest will also be reduced.
Because mortgage interest is anchored by the basic interest rate of the central bank, commercial banks will generally follow suit at the beginning of the second year when the central bank cuts interest rates. However, due to the moderate and stable real estate market and strong demand for mortgage loans, and the real estate industry is strictly regulated, local banks will tend to add some points to the mortgage interest rate to obtain more income, so the downward adjustment will be very small.
Is mortgage interest simple interest or compound interest?
In the formula, the monthly interest is calculated according to simple interest.
But the mortgage is definitely compound interest! Because the monthly interest rate is calculated by dividing the annual interest rate by 12, paying one yuan a month is definitely different from paying 12 yuan at the end of the year.
In other words, the discount rate is not considered when converting the annual interest rate into the monthly interest rate.
In fact, pure interest in economics is very rare.
The explanation is as follows:
The interest period of the mortgage is 1 month, and you need to pay off the current principal and interest.
Let's calculate the monthly mortgage composition:
According to the loan calculator, the monthly repayment is 40 17.8 1, in which the interest is 30 15.73 yuan (650,000 * 5.5675%/12), the principal 1002.09, and the remaining loan principal is 60.
In this way, interest is charged according to the principal * interest rate, which is in line with simple interest in mathematics.
Because when calculating the monthly payment, the monthly interest rate = annual interest rate/12 (this is an international practice and will not be expanded).
Suppose the annual interest is 12 yuan, and the monthly payment of 1 yuan is different from the payment of 12 yuan one year later. Paying interest in advance equals paying extra interest.
This explanation may be easier to understand:
The interest you pay every month is still calculated, which is equivalent to paying the current month's interest 1 1 month in advance.
(Although you paid back 40 17.8 1 yuan in the first month, only 1002.09 yuan does not bear interest in the next month, and the remaining 30 15.73 yuan still bears interest at the monthly interest rate. )
The reason is that the simple monthly interest rate is not equal to the annual interest rate/12!
"Simple profit" is actually a very special case, which is not common in practical application. Therefore, there is no agreement in the loan contract that "simple interest bears interest", so there is no so-called default.