According to the requirements of the central bank, starting from March 1 2020, financial institutions should negotiate with customers of inventory variable interest rate loans on the conversion terms of pricing benchmark, and convert the interest rate pricing method agreed in the original contract into reward points based on pricing benchmark (reward points are negative), and the value of reward points will remain unchanged during the remaining period of the contract. Next, what does it mean for Jintou Bian Xiao to introduce housing loan interest rate conversion?

What do you mean?

In short, the central bank put forward multiple-choice questions for housing lenders. Does LPR choose fixed interest rate or floating interest rate?

Choose one, fixed interest rate. After choosing a fixed interest rate, the housing loan will maintain the current interest rate level and will not be affected by the change of LPR interest rate.

Option 2: LPR increases floating interest rate. LPR is the estimated interest rate of the loan market, which is a new mechanism announced by the central bank on 20 19. LPR is published once a month and can be increased. Integral value = 2065 438+09+02 The current interest rate level of the original contract -LPR announced, and the integral value will remain unchanged after being determined.

In other words, if you choose the floating interest rate with LPR, your future housing loan interest rate will change with the change of LPR, which will affect your monthly salary.

It should be emphasized that the borrower has only one option and cannot convert it after conversion.