You can apply for a reduction, and the interest rate can be coordinated by both parties, or you can find another bank.

Mortgage interest rate:

1, mortgage interest rate, refers to the loan with real estate in the bank, and the loan shall pay interest at the interest rate stipulated by the bank.

2. China's mortgage interest rate is uniformly stipulated by the People's Bank of China, and all commercial banks can float within a certain range. The mortgage interest rate in China is not always constant, but often changes. The form is that interest rates have been rising, so we often compare the situation before and after raising interest rates.

Common sense of loan interest

(1) The interest rate conversion formula for RMB business is (note: common for deposits and loans):

1. daily interest rate (0/000)= annual interest rate (%)÷360= monthly interest rate (‰)÷30.

2. Monthly interest rate (‰) = annual interest rate (%)÷ 12

(two) banks can use the product interest method and the transaction interest method to calculate interest.

1. Accumulate the account balance daily according to the actual number of days, and multiply the accumulated product by the daily interest rate to calculate the interest. The interest-bearing formula is:

Interest = cumulative interest-bearing product × daily interest rate, where cumulative interest-bearing product = total daily balance.

2. Transaction-by-transaction interest calculation method calculates interest one by one according to the preset interest calculation formula: interest = principal × interest rate × loan term, with three details:

If the interest-bearing period is a whole year (month), the interest-bearing formula is:

① Interest = principal × year (month )× year (month) interest rate

If the interest-bearing period is a whole year (month) and days, the interest-bearing formula is:

② Interest = principal × annual (monthly) × annual (monthly) interest rate+principal × odd days × daily interest rate.

At the same time, banks can choose to convert all interest-bearing periods into actual days to calculate interest, that is, 365 days per year (366 days in leap years), and each month is the actual number of days in the Gregorian calendar of the current month. The interest-bearing formula is as follows:

③ Interest = principal × actual days × daily interest rate

These three formulas are essentially the same, but because the interest rate conversion is only 360 days a year, when calculating the actual daily interest rate, it will be calculated as 365 days a year, and the result will be slightly biased. Which formula is used specifically, the central bank gives financial institutions the right to choose independently. Therefore, the parties and financial institutions can agree on this in the contract.

(3) Compound interest: Compound interest means adding interest at a certain interest rate. According to the regulations of the central bank, if the borrower fails to repay the interest at the time agreed in the contract, it will be charged with compound interest.

(4) Penalty interest: If the lender fails to repay the bank loan within the prescribed time limit, the penalty interest paid by the bank to the defaulter according to the contract signed with the parties is called bank penalty interest.

(V) loans overdue liquidated damages: penalties for the defaulting party with the same nature as penalty interest.

Can I apply for mortgage interest reduction?

You can't apply for lower interest on mortgage interest.

Generally speaking, the user's mortgage interest rate is subject to the LPR fixed interest rate. Even if the LPR is lowered, the user's mortgage interest rate will not change, and users are not supported to apply to the bank for interest rate reduction. If the user's mortgage interest rate is subject to LPR floating interest rate, and the LPR is lowered, the mortgage interest rate may be lowered, depending on the agreement between the bank and the repayment person.

Can I default on my mortgage for several months?

According to the bank's handling of loans overdue, the mortgage default cannot exceed three months at most. After more than three months, considering the safety of funds, banks will choose to sue property buyers. If the buyer can't repay the debt after being sued, the bank will ask the court to enforce it.

After compulsory execution, the buyer's house will be repossessed by the court and auctioned directly. The money from the auction is used to repay the arrears, and if there is any surplus, it belongs to the buyer. However, in the auction, because the price set by the court is generally much lower than the market price, it is difficult to shoot a high price.

Can I apply for a lower mortgage interest rate?

You can't apply for a lower mortgage interest rate. Generally speaking, the user's mortgage interest rate is subject to the LPR fixed interest rate. Even if the LPR is lowered, the user's mortgage interest rate will not change, and users are not supported to apply to the bank for interest rate reduction. If the user's mortgage interest rate is subject to LPR floating interest rate, and the LPR is lowered, the mortgage interest rate may be lowered, depending on the agreement between the bank and the repayment person.

Is the mortgage simple interest or compound interest?

Mortgage interest is calculated at simple interest. Generally speaking, mortgage repayment is carried out monthly. Every month, you need to pay off the monthly payment and interest of the current month, so there is no problem of continuing to calculate the interest of the next period with the principal plus interest, so the interest on the mortgage cannot be calculated according to the simple interest.

Simple interest means that no matter how long the deposit period of the fund is, only the principal is used to calculate the interest, and the interest of each period is paid off in the next interest-bearing cycle.

Compound interest means that when calculating interest, the interest of an interest period is calculated by the principal plus the accumulated interest in the previous period, which is also commonly known as "rolling interest".

Can I default on my mortgage for several months?

According to the bank's handling of loans overdue, the mortgage default cannot exceed three months at most. After more than three months, considering the safety of funds, banks will choose to sue property buyers. If the buyer can't repay the debt after being sued, the bank will ask the court to enforce it.

After compulsory execution, the buyer's house will be repossessed by the court and auctioned directly. The money from the auction is used to repay the arrears, and if there is any surplus, it belongs to the buyer. However, in the auction, because the price set by the court is generally much lower than the market price, it is difficult to shoot a high price.

When the mortgage is in default, the borrower can negotiate with the bank and demand that only the interest be repaid temporarily, but not the principal. You can also discuss with the bank to extend the repayment period. For example, the original mortgage term was 20 years. You can take the initiative to discuss with the bank and extend the mortgage term to 30 years.

Some banks will launch "financial mortgage" to lend the mortgage that buyers have already paid back to buyers, but the interest will be higher. This is an emergency method.