The latest calculation method of mortgage interest rate LPR is the original loan interest rate minus the difference between the LPR interest rate at the time of handling and the new LPR interest rate. For example, your initial loan interest rate is 4.9%, and now LPR is 4.6%. The new contract interest rate =LPR+0.3%, and 0.3% will never change in the future. Only LPR is variable.

The loan market quotation rate (LPR) is submitted by each quotation bank to the National Interbank Funding Center in a step of 0.05 percentage point on the 20th of each month (postponed in case of holidays), and the National Interbank Funding Center will calculate the average after excluding the highest quotation and the lowest quotation.

Extended information LPR quotation banks should meet the requirements of macro-prudential policy framework, establish internal rate of return curve and internal transfer pricing mechanism, have strong independent pricing ability, formulate the management measures of quotation interest rate in the loan market of the bank, and other conditions conducive to quotation work.

The self-discipline mechanism of market interest rate pricing evaluates the quotation quality of quotation banks, regularly adjusts the members of quotation banks, supervises and manages the operation of quotation interest rates in the loan market, and regulates the behaviors of quotation banks and designated issuers.