How to calculate LPR floating interest rate

LPR is the loan market quoted interest rate. Many people do not know how to calculate LPR floating interest rate. Next, the editor will introduce it to you in detail:

LPR floating interest rate = LPR base interest rate plus points. For example: Borrower Xiao Wang, when buying a house, enjoyed a 10% discount (10% discount) on the loan base interest rate. The loan date was August 1, 2015. The term is 20 years.

1. If Xiao Wang chooses to convert the pricing basis of this mortgage to LPR, the current 5-year loan base interest rate is 4.9, and the actual execution interest rate before conversion is 4.9×(1-10)=4.41 .

The LPR of 5 years or more released in December 2019 is 4.8. According to the principle that the interest rate remains unchanged at the time of conversion, the plus and minus points for Xiao Wang’s mortgage loan are -0.39=4.41-4.8, that is minus 39 basis points.

2. From then on, until the mortgage is repaid, the points will remain unchanged, but the mortgage interest rate will change with the change of LPR for a term of more than 5 years. If LPR shows a downward trend in the future, mortgage interest payments are expected to decrease; conversely, if LPR rises in the future, loan interest rates will increase accordingly.