The mortgage interest rate is 6.86, so it is cost-effective to change it to LPR interest rate. 20 19 and 12 issued an LPR of more than 5 years, which was 4.8%. If the LPR is higher than 4.8% in the next five years, you can choose a fixed interest rate. Conversely, if it is judged that the future LPR is lower than 4.8%, you can choose LPR.

How to choose the interest rate depends on the borrower's own judgment, especially on the future interest rate trend. If the borrower thinks 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.

Extended data:

For borrowers, if the current mortgage execution interest rate is higher than LPR, when LPR rises in the future, the method of adding and subtracting points is more favorable; When LPR decreases, the floating multiple method is more favorable. If the current interest rate is lower than LPR, the floating multiple method is more favorable when LPR rises in the future; When LPR decreases, the method of adding and subtracting points is more favorable.

In fact, when the reference loan benchmark interest rate fluctuates by a certain multiple, the change of the loan benchmark interest rate will have an asymmetric effect of enlarging or narrowing the loan execution interest rate. For example, if the interest rates of the two loans are 0.8 times and 1.2 times of the benchmark interest rate respectively, when the benchmark interest rate drops by 0. 1 percentage point, the actual execution interest rates of the two loans drop by 0.08 and 0. 12 percentage point respectively, and the impact effect is obviously different.

People's Network -LPR or fixed interest rate, which is more cost-effective?