How to check whether the interest rate of a mortgage is fixed or floating

To know whether the interest rate of a loan is fixed or floating, you can find out in the following ways: 1. You can check the loan contract, Your loan interest rate will be stated in the contract.

2. Call the customer service of the loan company and let them know your loan interest rate.

You must know that your loan is not fixed. If it is a fixed interest rate, you can contact the bank. The pricing method for applying for a conversion loan can be changed to LPR or fixed interest rate. But whether it is LPR or fixed interest rate, it can only be transferred once, and it cannot be changed again once it is confirmed.

What does the reduction in mortgage interest rates mean?

1. The interest rates on first home mortgage loans have been reduced. Starting from October 2022, the People's Bank of China will reduce the first housing provident fund loan interest rate by 0.15 basis points, from 2.75% and 3.25% within 5 years to 2.6%.

Even those who have had housing provident fund loans and have taken out loans can also enjoy the interest rate cut, but they will not take effect until after January 1, 2023. If it is after October 1, 2022, or if you have already applied for a loan, you can apply for a loan at the new interest rate.

2. The interest rate on commercial loans for first-time buyers has been reduced. Starting from May 2022, the lower limit of the first-home commercial loan interest rate will be reduced by 20 basis points from the loan market quotation rate within the corresponding period, which is not lower than the LPR-0.2% in the same period.

So, if you apply for your first home in the future, your mortgage interest rate will drop, which will make your house more attractive. Anyone who has bought a house and is still repaying it knows that their mortgage interest rate is fixed. Although they cannot enjoy the lowest loan interest rate, they can enjoy the reduction of LPR interest rate.

3. The LPR interest rate cut leads to a decrease in mortgage interest rates. The interest rate of LPR is set by 18 agent banks themselves, and is obtained after deducting the arithmetic mean of a maximum and a minimum. If calculated according to the floating interest rate of LPR, then the interest rate of LPR will be lower.

However, it should be noted that the loan interest rate is not adjusted according to the LPR interest rate every month, but based on the repricing cycle and repricing date stipulated in the contract, based on the LPR interest rate in the most recent month.

For example, the repricing date stipulated in the contract is January 1st, and the repricing cycle is one year, so it depends on whether the LPR interest rate on December 20 last year was reduced, and on December 20 Previously, no matter how low the LPR interest rate dropped, there would be no change.