According to Announcement No.30 of the People's Bank of China [20 19], a number of banks have converted the pricing benchmark of floating loans. Mortgage interest rate can be converted into floating interest rate or fixed interest rate, so is it better to convert mortgage interest rate into floating interest rate or fixed interest rate?

Is the mortgage interest rate conversion floating or fixed?

Whether the mortgage interest rate is a floating interest rate or a fixed interest rate depends mainly on the change of lpr interest rate.

If the lpr interest rate is reduced, the floating interest rate can enjoy the interest rate cut bonus, but the fixed interest rate cannot enjoy the interest rate cut bonus. If the lpr interest rate rises, the repayment amount of floating interest rate will increase, but the repayment amount of fixed interest rate will not be affected.

Although the change of lpr interest rate has an intuitive impact on the repayment amount, the situation is more complicated because the economy has an operating cycle, lpr interest rate cannot always rise or fall, and the long-term change cannot be predicted. Therefore, there is no definite answer whether it is better to convert mortgage interest rate into floating interest rate or fixed interest rate.

Generally, the repayment period is only five years, and people who are insensitive to interest rate changes and recognize that lpr is a downward trend for a long time can choose floating interest rates. The original loan interest rate is lower and more conservative, and the mortgage family who likes stable repayment can choose a fixed interest rate. However, which one to choose in the end needs to be chosen according to your own actual situation.