The interest rate of commercial loans is uniformly stipulated by the People's Bank of China, but it is not fixed. The interest rate of commercial loans will fluctuate between 5% and 20% according to the actual projects of banks.
The mortgage interest rate of China People's Bank is 4.9% of the benchmark interest rate for loans with a term of more than five years, while the mortgage interest rate is 5.88%, which is actually 20% higher than the benchmark interest rate, that is, 20 percentage points higher than the benchmark interest rate, which is in line with the change of floating range, so it is normal for the mortgage interest rate to rise to 5.88%.
The floating rate of mortgage interest is calculated on the basis of the benchmark interest rate, that is, on the basis of 4.9%. The benchmark interest rates of all banks in China are set by the People's Bank of China, which is the same benchmark interest rate. So the benchmark mortgage interest rate is 4.9%, usually the annual interest rate, but it has risen by 20%.
Calculation method of mortgage interest:
The actual annual interest rate is 4.9% *( 1+20%)= 5.88. Interest rate refers to the ratio of interest amount to principal in a certain period, usually expressed as a percentage. If calculated on an annual basis, it is called annual interest rate.
The calculation formula is: interest rate = interest amount/principal x time × 100%.
On this basis, equal principal and interest will be calculated or the average capital will be repaid.
The so-called matching principal and interest is to add the borrower's principal and the total interest generated, and then distribute it evenly to each repayment month. The borrower's monthly payment is the same, but the difference is that the loan interest in the early repayment period accounts for a large proportion of the monthly payment, and the principal is less. With the monthly repayment of users, the proportion of interest in the monthly payment will be less and less, and the proportion of principal will be more and more.
The average capital refers to the borrower's monthly repayment principal is the same, but the repayment interest is different. At the beginning of repayment, there are more principal in arrears, so the interest generated will be more and the monthly payment will be higher. With the repayment of users, the monthly repayment principal will remain unchanged, but the repayment interest will decrease with the decrease of loan principal.
If we want to borrow money, we must choose a suitable interest to borrow money, otherwise we will still suffer losses.