The mortgage interest rate is 5.39. Do you want to transfer to lpr?
When the mortgage interest rate is 5.39, it will be converted into lpr. When the existing mortgage is converted into LPR, the floating value of interest rate includes the floating ratio or discount of the original mortgage interest rate. For example, the mortgage interest rate is 5.39% and the floating value after LPR conversion is 59 basis points (5.39%-4.8%); If the mortgage interest rate is 5.88%, the floating value is 108 basis points (5.88%-4.8%).
Similarly, if the original mortgage interest rate is discounted on the basis of the benchmark interest rate and the real interest rate is only 4.65%, then the floating value after LPR conversion is-15 basis points. That is, the converted interest rate can still enjoy the discount of 15 basis points.
However, changing the mortgage interest rate to LPR is risky. The change of market interest rate is unpredictable, and lenders can't interfere with the change of market interest rate. Therefore, after choosing LPR, you may enjoy the dividend of interest rate reduction, and of course you may also face the risk of raising the loan interest rate and increasing the loan expenditure.
How often is the mortgage lpr adjusted?
The adjustment cycle of mortgage lpr depends on the specific situation of the lending bank. The shortest adjustment period is 1 year, and the longest adjustment period is the corresponding contract period. The lpr interest rate is usually adjusted once a month, but the mortgage based on lpr will not be adjusted accordingly every month. If the agreed term is one year, the mortgage will be priced at the same lpr interest rate within one year.