Lpr interest rate, also known as the loan market quotation, is a new mechanism introduced by the central bank on 20 19. LPR is published once a month. LPR is quoted by the quoting bank by adding the operating interest rate in the open market and calculated by the National Interbank Funding Center, which provides pricing reference for bank loans.

At present, LPR quotation banks include 18 banks, and the types of quotation banks have increased to national banks, including city commercial banks, rural commercial banks, foreign banks and private banks. Before 9: 00 on the 20th of each month (postponed in case of holidays), each quotation bank shall submit the quotation to the National Interbank Funding Center in steps of 0.05 percentage point. After excluding the highest and lowest quotations, the National Interbank Funding Center will calculate the LPR with the arithmetic average, and round it to the nearest integer multiple of 0.05%, and announce it at 9: 30 on the same day. The public can inquire at the National Interbank Funding Center and the website of China People's Bank.

Choose LPR interest rate or fixed interest rate when buying a house?

The two conversion methods have their own advantages, and the specific choice depends on the borrower's own judgment, especially on the future interest rate trend. If you think that LPR will decline in the future, it will be better to refer to LPR pricing instead; If you think LPR may rise in the future, it will be beneficial to switch to a fixed interest rate.

"It should be noted that under the pricing method of the benchmark interest rate, it generally floats in proportion, such as the benchmark interest rate rises 10% and falls15%; Under the pricing method of LPR, it fluctuates according to the number of points, such as LPR plus 40 basis points and MINUS 30 basis points. " The relevant person in charge of China Industrial and Commercial Bank Beijing Branch said. He introduced that suppose your current mortgage is 10 years, and the interest rate is 30% off the benchmark interest rate. After conversion to LPR, it is not 30% off the basis of LPR.

"Before the conversion, the benchmark loan interest rate was 4.9%, and the actual execution interest rate after 30% discount was 3.43%. After the conversion to LPR, the actual execution interest rate of the loan is still 3.43%, but the interest rate pricing method is converted to LPR as the pricing benchmark. " The person in charge said that after conversion, the loan with a term of 10 was 4.8% with reference to the LPR of more than five years published on February 20th, 20 19. Therefore, the pricing method of this loan is converted into: minus 137 basis points on the basis of LPR over five years, that is, minus 1.

If the borrower chooses to switch to "fixed interest rate", the interest rate of his mortgage will be 3.43% during the remaining period of the contract. If the borrower chooses to refer to LPR pricing instead, the mortgage interest rate will be determined according to "LPR-65438+0.37% over 5 years".