I think it is more cost-effective to choose to float with LPR. Now the benchmark loan interest rate is 4.9%, and the LPR in February 2020 is 4.75%. After the change, the monthly supply can be reduced. Moreover, according to the trend in recent years and the overall economic development, the interest rate shows a downward trend, so it is cost-effective to switch to LPR. Of course, once selected, it cannot be changed, and there is also the risk that interest rates will rise for a long time to come.

Two methods are selected. The original repayment method is calculated according to "benchmark interest rate+floating ratio", with the benchmark interest rate variable and the floating ratio unchanged; The new method is calculated according to "loan market quoted interest rate (LPR) plus floating point". LPR is variable and floating point is constant. According to Announcement [20 19] No.30 of the People's Bank of China, the interest rate level of personal mortgage is unchanged before and after the conversion. According to the new choice, your interest rate should be expressed as: LPR+ floating point. After the conversion, the mortgage interest rate is the same as before the first repricing date; From the first repricing date, the mortgage interest rate will become "the latest LPR+ floating point over five years"; And so on, every repricing day.

LPR is a variable. Compared with the above methods, since the conversion is based on the benchmark interest rate of 4.8% (more than five years) in 2065438+2009 and 65438+2009, it is obvious that if the LPR is higher than 4.8% in the next five years, the original repayment method can be selected. On the other hand, if it is judged that the future LPR is lower than 4.8%, you can choose to convert it into LPR.