Banks have loans with relatively low interest rates, which are lower than the mortgage interest rate, so some borrowers want to convert their mortgages into other loans, such as some mortgage loans and operating loans, so as to reduce interest rates. So, is it true that mortgage interest is reduced? Here, it is still necessary to analyze the specific situation. Lending is actually to turn a loan with high interest rate into a loan with low interest rate, so as to achieve the purpose of lowering interest rate. For example, the bank mortgage interest rate is 5.4%, while the operating loan interest rate is 3.8%. If the mortgage is converted into an operating loan, the interest rate difference between the two loans will be 1.6%, which will definitely save a lot of interest.

However, it does not mean that the interest can be reduced if the mortgage is converted to mortgage: 1. First, the repayment period will be shortened after mortgage refinancing. The longest loan period of mortgage is 30 years, while other types of loans, such as commercial loans, are five years at the longest. Even if the interest rate will be low after the refinancing, the loan term will be shortened and the monthly payment may be higher, which will increase the repayment pressure of the borrower. Secondly, most of the loans are earmarked, which will involve the real use of funds. For example, if a loan is converted into a business loan, the bank will provide relevant consumption vouchers to verify the later use of funds. If the borrower is not really in business, there is a risk of illegal funds. Once the bank withdraws the funds in advance, it will be very troublesome for the borrower to be unable to repay them. If the borrower really thinks that the mortgage interest is too high, it is better to apply for a pure commercial loan and convert the commercial loan into a provident fund loan. The nature of such loans is mortgage, and the interest rate of provident fund loans is lower than that of pure commercial loans, and the term is long enough. Compared with other types of loans, it is more cost-effective and will not have the above risks.