It is believed that many friends who handled mortgage business before June 65438+1 October1in 2020 have received phone calls from banks, asking to convert the interest rate of home loan in their own names. As a long-term large loan, how to convert the interest rate is very important for buyers, so the topic of whether to convert the interest rate has aroused great concern in recent days, so whether to convert it to LPR?

This mortgage interest rate conversion originated from the loan market quotation issued by the central bank in August 2065438+2009. The main purpose of the central bank's loan market quotation is the marketization of loan interest rates. According to the requirements of the central bank, customers who applied for mortgage before June 65438+1 October 2020 1 can start interest rate conversion from March 20201,which means that a large number of mortgage users need to re-select some interest rates, either fixed interest rates or LPR plus basis point interest rates.

The fixed interest rate is the original loan interest rate, and the mortgage interest rate fluctuates based on the benchmark interest rate of the central bank. If we choose a fixed interest rate and only the benchmark interest rate of the central bank remains unchanged during the loan period, then our mortgage interest rate will remain unchanged.

LPR refers to the quoted interest rate in the loan market, which is calculated by the monthly loan interest rate of the bank's high-quality users reported by 18 banks. The central bank will announce the latest LPR on the 20th of each month, and this interest rate is floating. If mortgage users choose LPR plus basis point interest rate, the future mortgage interest rate will change with the change of LPR.

In fact, whether buyers are willing to switch interest rates mainly depends on their expectations of the trend of LPR interest rates. Since the LPR interest rate was first announced on September 20th, 20 19, the five-year LPR interest rates were 4.85%, 4.85%, 4.8%, 4.8%, 4.75% and 4.65% respectively.

As far as the current situation is concerned, it is suggested that you can choose to convert the mortgage interest rate into LPR, but there are still many uncertainties in the future LPR, so I suggest you consider it carefully when converting the interest rate, because once the interest rate is successfully converted, it cannot be changed.

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