First, the relationship between LPR adjustment and mortgage interest rate.
LPR is the basic loan reference interest rate determined by the quotation of domestic banks authorized by the People's Bank of China, and its change directly affects the loan interest rate level of commercial banks. When LPR is adjusted, commercial banks usually adjust their mortgage interest rates according to the new LPR level, which in turn will affect the repayment amount of borrowers.
Second, the impact of LPR adjustment on mortgage interest.
The adjustment of LPR will lead to the corresponding change of mortgage interest. If LPR rises, mortgage interest will increase accordingly, and vice versa. The change of interest directly affects the repayment pressure of borrowers, and the increase of interest means the increase of monthly repayment amount, and vice versa.
Thirdly, the influence of LPR adjustment on repayment plan.
Because mortgage loans usually use the method of equal principal and interest repayment, that is, the monthly repayment amount is fixed, so the adjustment of LPR will lead to the change of repayment plan. When LPR rises, although the monthly repayment amount remains the same, the part used to repay the principal will decrease and the interest part will increase, thus extending the repayment period. On the contrary, the decline of LPR will shorten the repayment period.
Four, LPR adjustment and the borrower's coping strategies
Faced with the adjustment of LPR, borrowers can adopt various strategies to deal with it. For example, for borrowers who are about to apply for mortgage loans, they can pay attention to the trend of LPR and choose the right time to apply for loans to reduce costs. For borrowers who have already made loans, we can consider prepaying or adjusting the repayment plan to reduce the repayment pressure.
To sum up:
The influence of LPR adjustment on mortgage loan is mainly reflected in the change of loan interest rate, which in turn affects the borrower's repayment plan and overall borrowing cost. Borrowers should pay attention to the trend of LPR and adopt appropriate coping strategies according to their own situation to cope with the risks brought by interest rate changes.
Legal basis:
Contract law of the people's Republic of China
Article 125 stipulates:
If the parties have disputes about the understanding of the terms of the contract, they shall determine the true meaning of the terms according to the words used in the contract, the relevant terms of the contract, the purpose of the contract, the trading habits and the principle of good faith.
Law of the People's Bank of China of the People's Republic of China
Article 23 provides that:
The People's Bank of China can use the following monetary policy tools to implement monetary policy:
(1) Require banking financial institutions to deposit the deposit reserve in a prescribed proportion;
2. Determine the benchmark interest rate of the central bank;
(3) handling rediscount for banking financial institutions that have opened accounts with the People's Bank of China;
(4) Providing loans to commercial banks.
(5) buying and selling treasury bonds, other government bonds, financial bonds and foreign exchange in the open market;
VI. Other monetary policy tools determined by the State Council.
In order to implement monetary policy, the People's Bank of China may engage in financial business activities in accordance with the relevant provisions of Chapter IV of this Law.