Starting this month, which one is better for re-signing the mortgage rate?
The "mortgage family" can choose fixed interest rates or linked to LPR; provident fund loans will remain unchanged for the time being; conversion will be completed before the end of August
The fixed interest rate is still linked to the LPR (loan market quoted interest rate)-starting from March 1, the "mortgage family" can re-sign the loan contract to replace the mortgage interest rate.
According to the central bank's announcement, starting from March 1 this year, readjusting the existing mortgage interest rate, there are two options for customers with floating interest rate loans. In principle, the conversion should be completed before the end of August this year. At present, at least 24 major banks have issued related announcements, and many banks have said that they will continue to send "one-on-one" text messages.
Which of the two alternatives is more economical for the conversion plan? The Beijing News reporter calculated a simple account, taking a loan of 1 million, equal principal and interest repayment, the original contract term of 30 years, and now implementing 1.1 times the interest rate (that is, 5.39%) as an example, assuming that the LPR quote in December 2020 fell to 4.7 %, Monthly supply after linking LPR can be reduced by about 62 yuan.
In this regard, experts believe that for users, fixed interest rates are fixed for a long period of time, and they cannot enjoy the dividends of falling interest rates, but they can also avoid rising costs when interest rates rise.
Who can re-sign mortgage rates?
Three conditions need to be met, and provident fund loans are not included
According to the central bank announcement, convertible loans must meet several factors at the same time: first, loans that have been issued before January 1, 2020, or contracts that have been signed but not yet issued; second, reference is the loan benchmark interest rate pricing; third, floating interest rate.
It should be noted that the provident fund personal housing loan is not included. If it is a mixed loan of commercial loan and provident fund, only the commercial loan portion will be converted, and the provident fund loan portion will still be implemented in accordance with the original contract.
There are two options for the "mortgage family" who meet the conditions: fixed interest rate or adjustment with LPR. In other words, the original contract's pricing based on the "central bank's benchmark interest rate" can be converted into a fixed interest rate or LPR. Among them, if you choose to link to LPR, the future mortgage interest rate will fluctuate according to the LPR interest rate quote.
The conversion will begin on March 1, 2020, and in principle, be completed before August 31, 2020. For loans with co-borrowers, changes in pricing benchmarks need to be recognized. The borrower has only one option and cannot be converted again after the conversion.
Choose LPR, the monthly repayment amount will change?
The shortest period is one year, calculated based on the previous month's LPR quote
In fact, this is an important step in the reform of interest rate liberalization. LPR is quoted by the representative 18 quotation banks on the basis of an interest rate given by the central bank to the bank's best customers. Compared with the benchmark loan interest rate, LPR is more market-oriented and can better reflect changes in market supply and demand.
LPR is quoted once a month on the 20th, but after choosing to link to LPR, the monthly repayment amount may not change. According to the central bank regulations, both borrowers and lenders can re-determine the pricing cycle and pricing date, and the repricing cycle is at least one year. Assume that the user loan issuance date is November 1, 2019, the pricing cycle is one year, and November 1, 2020, which is postponed for one year, is the repricing date. At the time of this conversion, November 1st of each year can still be selected as the repricing date, or January 1st of each year, which is the current choice of most commercial commercial personal housing loans.
LPR is divided into "1 year term" and "more than 5 year term". Since the personal mortgage period is more than 5 years, users only need to pay attention to the LPR price of 5 years or more one month before the repricing date. What is the monthly payment for the following year.
How much is the difference between the two options?
Choose to link LPR, will face interest rate fluctuations in the future
Choose a fixed interest rate, that is, the level of the mortgage interest rate will remain unchanged for the remainder of the contract. The reporter consulted a number of banks and learned that, in order to make a smooth transition, the previous interest rate level will be continued during the conversion. Assume that the user originally enjoyed a 10% discount, and the interest rate was: the benchmark interest rate of 4.9% × 0.9 = 4.41%, and the new contract could also be agreed at 4.41%.
If you choose to link LPR, you will face interest rate fluctuations in the future. The bank said that the point-in-time interest rate remained unchanged at the time of the conversion, and the calculation logic behind it changed. Taking the existing loan interest rate of 4.41% as an example, the previous user's interest rate depends on whether the central bank's benchmark interest rate has changed. Depending on the LPR quote after conversion, the calculation logic is changed to LPR + (-) fixed spread. The fixed spread in this example is 0.39%, which is based on the December 2019 LPR quoted by the central bank, which is 4.8%-the current interest rate of 4.41%.
No matter the future LPR rises or falls, the user's interest rate is LPR-0.39%. If the current interest rate is higher than the 4.8% LPR quote in December 2019, add a little more.
How much does monthly energy supply save?
Every 5 basis points adjustment of the LPR will affect the monthly supply of millions of loans by about 30 yuan
The reporter calculated an account, if the user loan of 1 million, equal principal and interest repayment, the original contract period of 30 years, the remaining 20 years, the execution interest rate increased by 10%, that is, the interest rate is 4.9% × (1 + 10%) = 5.39%, The monthly payment is 5609.07 yuan.
Its fixed spread is 0.59% (5.39%-4.8% of LPR quote in December 2019). As the current interest rate is higher than the LPR in December 2019, its implemented interest rate will be adjusted to LPR + 0.59%. Assume that the LPR quote drops to 4.7% in December 2020, and the user's interest rate is 4.7% + 0.59% = 5.29%. Based on this calculation, the adjusted monthly supply is 5554.84 yuan, which is about 62 yuan less than it is now.
In addition, with a loan of 1 million users, equal principal and interest repayment, the original contract period is 30 years, and the remaining 25 years, the execution rate is calculated as a 10% discount to the benchmark interest rate. The mortgage interest rate is 4.9% × 0.9 = 4.41%, because the current interest rate is lower than 2019 LPR in December, the implementation of the interest rate will be adjusted to LPR-0.39%. After adjustment, the monthly supply was 4954.59 yuan, which was about 58.93 yuan less than the current one.
What is the specific impact of LPR changes on monthly supply? Zhang Dawei, chief analyst of Zhongyuan Real Estate, said that no matter whether the interest rate is 30% off, 10% off or 1.1 times higher, at the time of conversion, banks will extend the previous interest rate by adding and subtracting LPR points. After that, we must pay attention to the LPR quote one month before the repricing date. Every 5 basis points adjustment of LPR affects the monthly supply of millions of loans by about 30 yuan.
The reporter noticed that since the reform of the new LPR formation mechanism in August 2019, seven quotes have been quoted. Among them, there have been two "price reductions" for LPRs with a term of more than 5 years corresponding to most mortgage loans. One was in November last year and the other was In February this year, they all dropped 5 basis points.
Is LPR "price reduction" a future trend?
Expert: LPR has a high probability, but the decline remains to be seen
In the medium and long term, many people in the industry believe that the "LPR plus and minus points" program has a greater chance to enjoy interest rate dividends.
According to Yuan Chengjian, vice president of Zhuge Xunfang, for users, fixed interest rates are fixed for a long period of time, and they cannot enjoy the dividend of downward interest rates, but they can also avoid rising costs when interest rates rise. The method of using LPR as the benchmark for pricing is to follow the market for users, and you can enjoy the reduction of the repayment amount brought by the downward interest rate, but the repayment amount also increases when the interest rate rises.
As LPR is not only related to the mortgage interest rate, it is also the "anchor" for banks to issue loans to enterprises. At this stage, it is necessary to reduce costs for physical financing, so the LPR trend is downward. "As far as the current interest rate market environment is concerned, there is a high probability that LPR will go down. The option of choosing LPR as the benchmark for pricing may be a more stable and mainstream solution." Yuan Chengjian said.
However, the pace and magnitude of LPR decline in the medium and long term in the future remains to be seen. In the latest monetary policy implementation report, the central bank emphasized that it insists on the positioning of houses for living and not for speculation, and in accordance with the basic principle of "strategy according to the city", accelerate the establishment of a long-term real estate financial management mechanism, not using real estate Means to stimulate the economy in the short term. Industry insiders remind that LPR will not fall or rise all the time, and its decline may be limited. The bank also said that it would not pack tickets with customers to say that LPR would always drop and how much, but it was up to the customers to choose the solution.
Beijing News reporter Cheng Weimiao