According to the second article in the document, the central bank provides two conversion options. One is to convert the interest rate pricing method agreed in the original contract into LPR as the pricing benchmark (the plus point can be negative), and the plus point value is fixed during the remaining period of the contract; The second is to directly convert it into a fixed interest rate.
According to your question, your current mortgage interest rate is 6.37% (the current benchmark interest rate of the central bank is 4.9%, which is equivalent to a 30% increase in the benchmark). According to the requirements of the document, the interest rate level of the existing commercial personal housing loan at the time of conversion should remain unchanged from the latest execution interest rate of the original contract.
Therefore, if you choose to switch to a fixed loan interest rate, your loan interest rate will be fixed at 6.37% and the term will exceed 23 years (assuming that your loan term is 25 years and you say that you have paid it back for more than one year).
If you choose LPR for bonus points, the latest LPR for five years or more is 4.8%, so the loan interest rate for the first year after conversion is: LPR+157 BP (157 BP =1.57%), and the bonus points will remain unchanged in the remaining years of the contract (that is, after more than 23 years). For example, if the LPR is 4.6% after one year, your loan interest rate will become 6.17%; If the LPR is 5% after one year, your loan interest rate will become 6.57%. Therefore, if the LPR pricing method is selected, the future interest rate will be adjusted every year, which is close to the financing and lending level of the whole market at that time.
In the past, we all signed the pricing method of floating benchmark interest rate. If the central bank does not adjust the benchmark interest rate, your loan interest rate will remain unchanged. However, if you know something about finance, you will know that the financing level of the whole market has been changing, and the benchmark interest rate of the central bank will be adjusted every few years. Therefore, the floating pricing method of benchmark interest rate can not reflect the interest rate level of the market in time, which is not conducive to protecting the rights and interests of both borrowers and lenders.
On the contrary, in the fixed-point pricing method of LPR+, the LPR interest rate is updated once a month, and the interest rate level is closer to the real lending level in the market (of course, in order to avoid trouble, the document only needs to be updated and adjusted once a year, and the frequency of change is still better than the benchmark interest rate), which is more beneficial to both borrowers and lenders, because both parties have not suffered the most real interest rate in this interest rate market.
Choosing a fixed loan interest rate is a gamble. After betting, LPR will continue to rise and LPR will rise, so the fixed interest rate will prevail, but if LPR falls, the fixed interest rate will be affected. As for how LPR will change in the future, some people may make a judgment in the short term, but no one can predict it in the long term, so those brave people can choose a fixed interest rate and take a chance. Those timid people still choose LPR, and they will not suffer from each other.
The mortgage interest rate of 6.37 is already 0.3 times of the upper limit of 65,438+benchmark interest rate of 4.9%, which is firstly a higher mortgage interest rate. A year ago, many mortgage loans with benchmark interest rates were basically lower than the benchmark interest rates in previous years 10%.
My proposal must be changed, and I will not hesitate to change it into an LPR floating rate loan. Because the possibility of high economic growth in the future is low, it will become a stable growth whole, that is, "slow cattle." The possibility and space of LPR downward adjustment are relatively large. As long as LPR is lowered, your mortgage interest rate will drop, thus reducing your mortgage pressure.
You don't have to change it. Let me calculate it for you.
The mortgage loan of 6.37 based on 4.9 is 30% higher. If converted into LPR plus points, it is 4.8+ 1.57. If the future interest rate drops to 4.7, the benchmark interest rate model can be calculated as 4.7 *1.3 = 6.11,and the LPR model is 4.7.
However, if the benchmark interest rate is not adjusted synchronously, LPR is cost-effective, and 6.27 is lower than 6.37.
Your previous mortgage interest rate of 6.37% is already high. Since the loan interest rate is so high, why not change this policy to LPR floating interest rate, which may save you some loan interest, so my suggestion is definitely to change it.
According to the recent regulations on the market conversion of stock floating rate loans, it has been clearly stated in the regulations. From March to August, 2020, all major banks will convert their existing loans into LPR interest rates, and the specific interest rates will be negotiated by borrowers and banks.
One thing to note is that it can only be converted once and cannot be converted repeatedly. In other words, when converting, you can choose to convert it into fixed interest rate or floating interest rate, and the borrower can choose one of them according to his own situation.
Why should I suggest that you change the LPR interest rate of stock loans?
According to my personal understanding of the current floating interest rate regulation of stock loans, I suggest that you change it to LPR interest rate for two reasons:
(1) Due to the policy support, according to the floating interest rate regulation of stock loans recently released, stock loans must be converted from March 1 to August 3 1 this year.
According to the policy, to put it bluntly, stock loans should be converted into LPR interest rates, and before the end of the benchmark loan interest rate policy, that is, it must be changed. If it does not change, there is no choice. Since the policy must be changed, it may be better to take the initiative to change it with the bank.
(2) Because your previous loan interest rate was very high, taking this opportunity to convert it into LPR floating interest rate can even make you pay less loan interest.
For example, your current loan interest rate is 6.37%, which translates into an LPR interest rate of 4.80%+ 157 basis points. The actual loan interest rate is still 6.37%, and the actual loan interest rate has not changed.
But if you convert to LPR floating interest rate, when the central bank reduces the LPR interest rate to 4.50%, your actual loan interest rate will become 6.07%. 100 yuan can save 30 cents interest on each loan, which can save a lot of interest. This is the advantage of changing to LPR interest rate. If you don't change to LPR interest rate, it is impossible to lower your loan interest rate.
Based on the above analysis, according to your previous loan interest rate and the current stock loan conversion policy, I personally suggest converting shares, which will definitely be beneficial to myself.
In short, everything follows the policy orientation, and the policy is always correct. It is best to follow the policy guidance and implement it.
My mortgage is handled by Agricultural Bank of China, and the interest rate is 6. 125%. It has been repaid for more than two years. When the time comes, I will change the calculation method of LPR interest rate.
1, the current interest rate itself is not low, 6. 125% is 25% higher than the central bank's benchmark interest rate of 4.9%, which is considered high. Moreover, the main 6.37% has risen by 30%, and this interest rate is higher.
2.LPR interest rate changes once a month, and there is still more room for decline in the future. According to the trend of foreign LPR interest rate, it is basically at a low level for a long time. At present, my mortgage is still 28 years old, and the cycle is still very long, and there is also a lot of room for decline. I think it is more cost-effective to choose LPR in the future.
3. After this modification, it will not be modified. At present, the benchmark interest rate has no downward trend, so once the benchmark interest rate is selected, the future repayment will be this interest rate. However, LPR is likely to decline. At present, China's economy is in a transitional stage, and its economic growth rate is slowing down. The reduction of LPR is a stimulus to the central bank. With the continuous increase of China's economic aggregate, the growth rate will gradually slow down. In order to maintain economic vitality, LPR as a stimulus is more likely to decline in the future.
The above is the reason why I choose to change the calculation method of repayment interest rate. If the repayment period is long, you can choose to change to LPR. If the cycle is short, or there is an early repayment method, it is not necessary.
5.88, not going to change.
Originally, the mortgage was fixed every month according to 5.88. In fact, I believe that in ten or twenty years, with inflation, wages will increase, which is equivalent to cutting interest rates. If it becomes floating, will the mortgage increase with the increase of wages, or even exceed the increase of wages?
Maybe this is a good thing, but I don't expect to take advantage of the bank, and I don't want to be taken advantage of.
Personal opinion, just listen.
First of all, we need to know what is the purpose of the new loan interest rate policy issued by the central bank on February 28th, 20 19, that is, to reduce the financing cost of enterprises and the mortgage burden of buyers, so we give a more flexible LRP, which shows that the overall social financing cost will be in the process of decline in the future, and both the corporate loan interest rate and the individual housing loan interest rate will show a downward trend. In this case, it is conducive to stimulating the healthy and stable development of the economy. If the financing cost of the enterprise is reduced, the benefit can be increased. Can the interest burden of people with mortgages be reduced to stimulate consumption? In short, this policy has many advantages.
Then, for the 6.37% annualized mortgage interest in your hand, you only paid it back for one year. Change or not?
In fact, there is a simple measure. The current mortgage interest is at least 4.9% on an annual basis, and then 5.39%. It should be said that your 6.37% mortgage interest is still quite high. Under the trend of falling interest rates, changing to floating interest rates has greatly reduced your interest burden. According to the previous LRP observation results of 10 and 1 10, the situation is as follows.
However, one thing needs to be considered clearly, whether it is a fixed interest rate or a floating interest rate. This should be considered at one time and cannot be changed after the contract is re-signed. The volatility should be fully considered.
Don't worry too much. I believe you will get a call from the bank soon, asking you to adjust the loan interest rate in the past.
When banks handle mortgage loans, there are two options for mortgage interest rates, one is fixed interest rate and the other is floating interest rate; When signing the contract, the loan interest rate method was clearly defined.
The difference between fixed interest rate and floating interest rate: fixed interest rate refers to the interest rate that is not affected by the change of social average profit rate and the relationship between supply and demand of funds in a certain period of time, that is to say, no matter how many times the bank adjusts the interest rate, whether it rises or falls, the interest rate agreed in the contract is fixed. The floating interest rate is based on the average social profit rate and the change of capital supply and demand, and the personal loan interest rate is influenced by macro-control and microeconomics.
20 19 12.28, the central bank issued a new policy on mortgage interest rate. The mortgage interest rate that was previously raised according to the benchmark interest rate needs to be converted into a fixed interest rate or an LPR interest rate. The LPR interest rate is adjusted once a year, and the interest rate is fixed during the fixed interest rate contract period. Basically, everyone's mortgage interest rate needs to be adjusted. The borrower can only choose one of fixed interest rate and LPR interest rate, which cannot be changed after selection. In principle, it will be completed before August 3, 20201.
The floating mortgage interest rate based on the benchmark interest rate becomes a fixed interest rate, which is the interest rate corresponding to the existing mortgage interest rate contract.
Your current mortgage interest rate is 6.37% (the current benchmark interest rate of the central bank is 4.9%, which is equivalent to a 30% increase in the benchmark). According to the requirements of the document, the interest rate level of the existing commercial personal housing loan at the time of conversion should remain unchanged from the latest execution interest rate of the original contract.
Mortgage interest rate based on LPR
The mortgage interest rate based on LPR is linked to the market quotation rate LPR. The central bank will announce the LPR interest rate at a fixed time. Simply put, the contract signed by LPR is interest rate+points. The whole contract term remains unchanged, and the LPR interest rate is adjusted once a year. The adjusted interest rate is based on LPR interest rate of 65438+ February of the previous year.
Assuming that the mortgage interest rate signed by the principal is 50, the mortgage interest rate in 2020 is equal to 2019 65438+February LPR interest rate+50,2019 65438+February five-year LPR interest rate is equal to 4.8%, then the interest rate in 2020 is 4.8%+0.5% = 5. The mortgage interest rate of 202 1 is determined according to the LPR interest rate of 65438 +0.5% in February 2020, and so on.
The old floating interest rate based on the benchmark interest rate is converted into LPR interest rate, and the added value = current mortgage interest rate-2065438+65438 in 2009+LPR in February to ensure that the lender's mortgage interest rate remains unchanged before and after the conversion.
Your current mortgage interest rate is 6.37% (the current benchmark interest rate of the central bank is 4.9%, which is equivalent to a 30% increase in the benchmark). Assuming that the loan term is 20 years, the value-added of LPR is =6.37%-4.8%= 1.57%, and within the remaining mortgage term of nearly 19, the value-added is 1.57%.
Through communication with people in the industry, the central bank hopes to replace the benchmark interest rate with LPR market-based interest rate to guide the downward trend of monetary policy interest rate (according to documents, large deposits are currently suspended or the exit period is set), aiming at supporting the real economy.
abstract
At present, the interest rate of major loans is 30% higher than the benchmark interest rate. I suggest converting it into LPR interest rate. At present, the downward pressure on China's economy is increasing, and a loose monetary policy and interest rate environment are necessary. In addition, the financing difficulties of small and medium-sized enterprises have always been valued by the top management, and it has become a consensus to reduce the burden on small and medium-sized enterprises. Based on the above two aspects, LPR interest rate may continue to decline in the future. If you choose to switch from the benchmark interest rate to the LPR interest rate, the interest paid should be lower than the fixed interest rate.
If you can choose not to change, you must choose to change, not to mention you must change. Why do I say that? Because the mortgage interest rate of 6.37% is already a relatively high mortgage interest rate in the market. After 20 17, the mortgage interest rate began to rise gradually on the basis of the benchmark interest rate. The average mortgage interest rate in recent years is about 5.88%, which is 20% higher than the original benchmark interest rate. 6.37% is 30% higher than the benchmark interest rate.
The mortgage interest rate is obtained by floating or increasing a certain basis point on the basis of the basic interest rate. If the basic interest rate remains the same, your mortgage interest rate will not change. In the past, the basic interest rate was the benchmark interest rate for loans over five years, and it will become the LPR interest rate over five years in the future. Obviously, the benchmark mortgage interest rate will not change again. If you don't change the LPR interest rate, then your mortgage interest rate will not change. Such a high interest rate has not come down, which is obviously inappropriate.
Choosing to adjust the basic interest rate to LPR interest rate is not only the requirement of the People's Bank of China, but also your need.
The LPR interest rate may change once a month. Although your mortgage interest rate will not change once a month, you can choose to change it once a year or fix it for life. Obviously, with your high interest rate, it is certainly unwise to choose to stay the same.
12 The LPR interest rate announced on February 20th was 4.8%, and the mortgage interest rate of 6.37% changed from the previous 4.9% *( 1+30%) to 4.8%+ 157bp. A bp is 0.0 1%. Your mortgage interest rate will change once a year. Generally, there are two time points to choose from. One is that it changes on 1+0 every year; The other is the corresponding date of the annual loan issuance date, such as: 20 1 February 91day, and the loan is adjusted according to the LPR interest rate published on February 2020 1 1 day. In order to unify management, banks generally advise customers to make adjustments on 1+0 every year.
As far as the current economic environment is concerned, interest rates in all countries are in a downward period, and even negative interest rates have appeared in European countries. The conductivity of the global economy is very strong, and no country can be immune from it. Therefore, in recent years, China's interest rate will continue to decline steadily. Of course, in the twenty or thirty years of mortgage, there will be many rounds of economic cycles. After the interest rate falls to a certain extent, it will definitely rise.
After adjusting the interest rate according to LPR, your mortgage interest rate may fall, but that should be a year later. It doesn't matter even if the LPR interest rate rises after one year. The mortgage period is twenty or thirty years. If it doesn't fall this year, it will fall next year. However, if you don't change it to LPR interest rate (of course, as I said before, you must change it), the interest rate will not be lowered until the loan expires. Therefore, for the subject, there is absolutely no need to have such concerns.
I was above 6.8 and was cheated by Zhongyuan Bank. Repayment for several years, the pressure is relatively high. Ma De, I'm going to sell my house next year. It's really hard to live with a mortgage.