Does the loan need to be adjusted to LPR?

It is necessary to convert it into the form of LPR floating interest rate. The LPR released in June 5438 +20201October was 4.8%, 4.75% in February-March and 4.65% in April. The monthly payment can be reduced after the change. According to the trend in recent years and the overall economic development, the interest rate shows a downward trend, and it is more cost-effective to switch to LPR. Of course, once selected, it cannot be changed, and there is also the risk that interest rates will rise for a long time to come.

According to Announcement No.30 of China People's Bank [20 19], there are three options for stock loans. First, according to the original repayment method, the benchmark interest rate fluctuates and the floating ratio remains unchanged; The second is to directly choose a fixed interest rate, and the interest rate level after individual housing loan conversion should be equal to the latest execution interest rate level of the original contract; The second is to choose the floating interest rate form of LPR. According to the calculation of "loan market quoted interest rate (LPR) plus floating point", LPR is variable and the floating point remains unchanged. According to Announcement [20 19] No.30 of the People's Bank of China, the interest rate level of personal mortgage is unchanged before and after the conversion. The interest rate selected according to LPR should be expressed as: LPR+ floating point. The original 4.9% is converted into LPR4.8%+0.10% = 4.9% according to LPR 4.8% in February of 20 19, and the mortgage interest rate is the same as before the first repricing date. From the first repricing date, the mortgage interest rate will become "the latest LPR+0.10% at that time"; And so on, every repricing day.

LPR is a variable. Compared with the above methods, since the conversion is based on the benchmark interest rate of 4.8% (more than five years) in 2065438+2009 and 65438+2009, it is obvious that if the LPR is higher than 4.8% in the next five years, you can choose the original repayment method or the fixed interest rate. On the other hand, if it is judged that the future LPR is lower than 4.8%, you can choose to convert it into LPR. The current LPR is 4.65%, which is significantly lower than 4.8%.