Mortgage rate, also known as "prepayment", is the ratio of the sum of mortgage principal and interest to the estimated value of collateral. Reasonable determination of mortgage interest rate is an important content of mortgage management.

The level of mortgage interest rate also reflects the bank's attitude towards mortgage risk. The low mortgage rate shows that banks are more cautious about mortgage loans, on the contrary, it shows that banks are more relaxed about mortgage loans.

Mortgage rate calculation formula: mortgage rate = total loan principal and interest ÷ appraisal value of mortgaged assets.

When determining the mortgage interest rate, banks should generally consider the following factors: (1) loan risk. Lenders' estimation of loan risk is inversely proportional to mortgage interest rate. The greater the risk, the lower the mortgage rate, the lower the risk and the higher the mortgage rate; (2) the borrower's reputation. Under normal circumstances, the mortgage interest rate should be lower for borrowers with poor asset strength, unreasonable structure and poor reputation. On the contrary, the mortgage interest rate can be higher; (3) Types of collateral. Because of the different types of collateral, the risks of possession and disposal are also different. According to the principle of risk compensation, the mortgage rate should be low for those collateral with high management risk and disposal risk, otherwise it can be set high; (4) loan term. The longer the loan term, the longer the mortgage term and the greater the risk during the mortgage period. So the mortgage interest rate is lower. The mortgage period is shorter, the risk is smaller and the mortgage rate can be higher.

2. What does the mortgage interest rate mean?

Mortgage rate is the ratio of the amount of debt that the mortgagor is willing to bear to the value of collateral. For banks, when customers apply for mortgage, the higher the mortgage interest rate, the better, preferably 100%. Banks need to control the ratio of loan issuance to collateral value by themselves, on the one hand, to control the ratio of loan to collateral value, on the other hand, to prevent customers from making secondary financing for collateral.

The low mortgage interest rate shows that banks are more cautious about mortgage loans, on the contrary, it shows that banks are more relaxed about mortgage loans. And it should be noted that the greater the value of collateral, the smaller the risk. If the sale can guarantee the integrity of the property in the agreement, the rest can be returned to the lender.

Different types of collateral have different mortgage rates. Where real estate is mortgaged, the mortgage rate shall not exceed 70% of the assessed value of the mortgaged property; If the land use right is mortgaged, the mortgage rate shall not exceed 60%; Vehicles and other means of transportation are used as collateral, and the mortgage rate shall not exceed 50% of its value.

3. What does the mortgage interest rate mean?

Mortgage rate is the ratio of the amount of debt that the mortgagor is willing to bear to the value of collateral. For banks, when customers apply for mortgage, the higher the mortgage interest rate, the better, preferably 100%. Banks need to control the ratio of loan issuance to collateral value by themselves, on the one hand, to control the ratio of loan to collateral value, on the other hand, to prevent customers from making secondary financing for collateral.

The low mortgage interest rate shows that banks are more cautious about mortgage loans, on the contrary, it shows that banks are more relaxed about mortgage loans. And it should be noted that the greater the value of collateral, the smaller the risk. If the sale can guarantee the integrity of the property in the agreement, the rest can be returned to the lender.

Different types of collateral have different mortgage rates. Where real estate is mortgaged, the mortgage rate shall not exceed 70% of the assessed value of the mortgaged property; If the land use right is mortgaged, the mortgage rate shall not exceed 60%; Vehicles and other means of transportation are used as collateral, and the mortgage rate shall not exceed 50% of its value.