?Purchasing a house is stressful, which one is better, LPR or fixed interest rate?

There is actually no conclusion on whether it is better to convert personal mortgage interest rates to LPR or fixed interest rates. The central bank stated that both conversion methods have their own advantages. The specific choice depends on our own judgment, which is our judgment of the future interest rate trend.

a

The general principle is: if you judge that the market interest rate will rise, it may be more beneficial to choose a fixed interest rate; if you judge that the market interest rate will fall, then it may be more advantageous to convert to LPR. favorable.

For us ordinary people, it is a very professional matter to judge whether China will raise or lower interest rates in the next two to thirty years. Should we choose LPR or fixed interest rate? In fact, there is another way of thinking: That’s how disgusted you are with the uncertainty of the future.

If you feel that the current mortgage repayment pressure is not high, but at the same time you are worried that rising interest rates will lead to an increase in mortgage loans in the future, and may even make the family's financial risk beyond control, then fixed interest rates are also a good choice, although this may It will make you miss out on the benefits of falling interest rates, but at the same time, it will help you eliminate the risk of financial uncertainty for decades to come.

b

If your mortgage period is relatively long, you can choose a floating interest rate based on LPR. It cannot be ruled out that today’s LPR benchmark interest rate for a five-year period is 4.85, and it will drop to 4 in 10 years, or even 3 or even lower in 20 years. Everything is possible.

For those who have very short-term mortgage loans, if your mortgage loan only has one, two, or three years left, the impact will not be great. After all, changes in interest rates are a slow process, not a sudden change in one day. of.

Of course, in the face of today's relatively high inflationary pressure, the loss of choosing a fixed interest rate is relatively small and more practical.

According to the current situation, it may be more advantageous for mortgage owners to choose LPR floating interest rate. Because judging from historical experience, economic growth switches from high-speed development to medium-low speed. In order to ensure economic vitality, relatively ample market liquidity is needed. In the medium and long term, the probability of lower interest rates is relatively high.

Developed countries in the world basically have low interest rates, or even negative interest rates. Therefore, industry insiders almost agree that in the medium and long term, it is better to choose to link to LPR than fixed interest rates.

c

If you have plans to repay your loan early in the near future, it doesn’t matter which one you choose. Unless there is vicious inflation and deflation, interest rates generally will not change sharply in the short term.