"Chinese Min bank authorized the National Interbank Lending Center to announce that the loan market quotation rate (LPR) on December 20, 2021 is: 3.8% for 1-year LPR and 4.65% for 5-year LPR.
Compared with November, the 1-year LPR quotation was lowered by 5BP, and the 5-year LPR quotation was unchanged. ”
In December last year, when many friends saw this news on the Internet, they excitedly picked up their mobile phones and called their mortgage bank: Hey, lpr has dropped, is my mortgage interest also going to be reduced?
The bank staff is also faced with more than a dozen phone calls a day, helpless, and can only explain: Sorry, the reduction is a one-year interest rate, and your mortgage interest has nothing to do.
What do you mean? Are there a few more lpr?
Right. There are two LPR: one-year LPR and five-year LPR.
Friends who can ask the bank whether the interest rate of their mortgage will be lowered are all students with foundation.
Know that your mortgage interest is not a fixed value.
After October 19, mortgage interest is calculated by lpr plus xbp. (Current first house x=103)
Among them, the lpr value is determined by the central bank, x is stipulated by the bank, and after the mortgage application is made, x will not change with the bank's policy adjustment. In general, the xbp of each bank at the same stage is the same.
At this point, when the lpr changes, your mortgage interest rate will change.
As mentioned above, LPR has two, one-year and five-year periods. So how do you differentiate yourself from which?
Quite simply, look at your loan years.
If your loan term is 1-5 years (including 5 years), then your mortgage interest is one-year lpr+xbp.
If your loan term is above 5 years, your mortgage interest is 5 years lpr+xbp.
Most people have a mortgage of 20-30 years, and the loan duration is more than 5 years.
So there is an answer from the bank staff, and this reduction has nothing to do with you.
But what doesn't come to mind is:
"The LPR was announced in the first month of 2022, and after 21 months, it cut interest rates again. The loan market quoted interest rate (LPR) on January 20 was: 3.7% for 1-year LPR and 4.6% for 5-year or more LPR. "
The bank's phone was broken again: Hey, the LPR has dropped, is my mortgage interest going to be reduced?
The bank staff also explained: Our bank's contract interest rate is adjusted according to the lpr on January 1 of each year, and your interest rate will not be adjusted until January next year.
When it's your turn to be confused, what does that mean?
Although the LPR is updated monthly, the interest rate for mortgage customers does not change every month according to the bank mortgage contract.
Most banks adjust interest based on LPR on January 1 of each year, and no matter when you issue a mortgage, they adjust the interest rate according to January of the following year.
There are also a small number of banks that stipulate that the interest rate of the personal mortgage contract is adjusted for 12 months, that is, the mortgage applied for in December 2021 will be adjusted according to the LPR until December 2021.
Oh, this is not another empty joy.
In addition, to add a knowledge point, the interest rate of the above mortgage is only related to commercial loans, and it is not related to provident fund loans.
The interest rate of commercial loans uses a floating interest rate that changes according to the lpr, while the interest rate of the provident fund loan is a fixed installment specific interest rate, which does not change and does not fluctuate.
In addition, the banking system will automatically adjust the interest, whether you call or not, the interest should fall, the rise will rise. After all, the system is just an emotionless machine.
All you need to do is open your mortgage bank app, click to view loans, and see at a glance.
So, if there is a problem, find [add v]. All the way forward, [plus v] accompany you.
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