What is the significance of mortgage interest rate conversion in 2020? How to operate the mortgage interest rate conversion in 2020? Is it better to convert mortgage interest rate into LPR or fixed in

What is the significance of mortgage interest rate conversion in 2020? How to operate the mortgage interest rate conversion in 2020? Is it better to convert mortgage interest rate into LPR or fixed interest rate? Mortgage interest rate refers to the loan with real estate in the bank, and the loan should pay interest according to the interest rate stipulated by the bank. The mortgage interest rate in China is uniformly stipulated by the People's Bank of China. A few days ago, the central bank announced that the mortgage interest rate can be converted, so what does it mean to convert the mortgage interest rate in 2020? Let's take a look with Bian Xiao. By the way, how to convert the mortgage interest rate in 2020? Is it better to convert the mortgage interest rate into LPR or fixed interest rate?

1.What is the significance of the mortgage interest rate conversion in 2020?

1, what is the significance of the mortgage interest rate conversion in 2020? According to the requirements of the central bank, starting from March 1 2020, financial institutions should negotiate with existing customers of floating-rate loans on the conversion terms of pricing benchmark, and convert the interest rate pricing agreed in the original contract into a plus item of LPR pricing benchmark (the plus item can be negative), and the plus item will remain unchanged during the remaining period of the contract; It can also be converted into a fixed interest rate.

2. In other words, the central bank gave the mortgage family a multiple-choice question, whether to choose a fixed interest rate or a "LPR+ plus point" floating interest rate.

(1) Fixed interest rate. After choosing a fixed interest rate, your mortgage loan will keep the current interest rate unchanged and will not be affected by the change of LPR interest rate.

(2) "LPR+plus point" floating interest rate. LPR is the quoted interest rate in the loan market, which is a new mechanism introduced by the central bank on 20 19. LPR is published once a month and can be increased or decreased. Increment value = current interest rate level of the original contract-2065438+LPR released in February 2009, and the increment value is fixed after confirmation.

In other words, choose "LPR+ plus point" floating interest rate, and your future mortgage interest rate will change with LPR, thus affecting the monthly payment.

Note: The borrower has only one choice, and cannot convert again after conversion.

Second, how to operate the mortgage interest rate conversion in 2020?

On February 29th, the official WeChat of China Construction Bank, Bank of China, Industrial and Commercial Bank of China and other banks successively announced that they would start accepting personal loan pricing benchmark conversion business with floating interest rate on March 1, and citizens can apply for it through mobile banking and online banking. Taking China Construction Bank as an example, this paper introduces in detail how to convert the mortgage interest rate in 2020.

1. Download the mobile banking APP of CCB through the application. Please ignore it.

2. After password or fingerprint verification, log on to the home page of mobile banking.

3. Select the "Loan" menu in the lower right corner.

4. Enter my loan and select "mortgage interest rate conversion" under LPR.

5. Select interest rate conversion, and the borrower can convert a single person. If there are couples or multiple borrowers, other borrowers need to complete the conversion together.

3. Is it better to convert mortgage interest rate into LPR or fixed interest rate?

1. Is it better to convert mortgage interest rate into LPR or fixed interest rate? In fact, the two conversions have their own advantages, and the specific choice depends on the judgment of your users, especially the future interest rate trend. If users 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.

2. Example analysis

If the current personal mortgage interest rate is 10% of the benchmark interest rate for five-year loans, then the real interest rate is 4.4 1%(=4.9%×0.9) according to the current benchmark interest rate for five-year loans. 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.

(1) If you choose to change to a fixed interest rate, the personal mortgage will be subject to the interest rate of 4.4 1% during the remaining period of the contract.

(2) If you choose to switch to the reference LPR pricing, the personal mortgage interest rate will be determined according to "LPR+(-0.39%) over five years". Among them, -0.39 is the fixed-point spread, which is determined according to the difference between the current actual interest rate (4.4 1%) and the LPR(4.8%) published in February 20 19 for more than five years. Before the repricing date, the mortgage interest rate was still 4.4 1%, but the calculation became "lpr 4.8%+(-0.39%)"; From the repricing date, the mortgage interest rate will become "5-year LPR+(-0.39%)"; And so on, every repricing day.

3. To sum up, if it is judged that LPR+(-0.39%) is 4.4 1% in the next five years, that is, LPR4.4 1%+0.39%=4.8% in the next five years, that is, the future LPR is higher than 4.8%, you can choose the first one (1. On the other hand, if it is judged that the future LPR is lower than 4.8%, the second scheme can be selected.

The above data are from the Internet for reference only.

The above is about the significance of mortgage interest rate conversion in 2020, how to operate mortgage interest rate conversion in 2020, and whether it is better to convert mortgage interest rate into LPR or fixed interest rate. I hope I can help you!