In the past few years, housing prices have remained high, and many places have introduced measures to increase mortgage interest rates. At that time, the mortgage interest rate was linked to a certain percentage of the national benchmark interest rate . At that time, the country's benchmark interest rate was 4.9% for loans with a period of five years or more. At that time, the general loan interest rate could reach 1.2 to 1.3 times the benchmark interest rate, that is, 5.88% to 6.37%. Some individuals even had a loan interest rate of 6.5%.
In 2020, the state will begin to require the mortgage interest rate to be linked with the LPR interest rate , and existing loans will be converted. You can choose either a fixed exchange rate or an LPR interest rate plus or minus point. The 6.5% loan rate can be converted to 4.85% + 165 basis points. Some people choose to have a fixed interest rate. This choice is definitely not cost-effective at the moment when LPR interest rates are falling, but it may be cost-effective in the context of interest rate hikes in overheated countries.
The latest LPR interest rate quotation in May 2022 is 4.45%. Coupled with some bank preferential policies, some people's first-home loan interest rate can reach 4.25%.
6.5% and 4.25% mortgage interest rates, the repayment amount is much worse. Loan of 1 million yuan, equal principal and interest 30 years repayment, need to repay 6320.68 yuan per month. The total repayment is as high as 2.2754 million yuan, and the interest paid is 1.2754 million yuan.
If the mortgage interest rate is only 4.25%, the monthly repayment is only 4919.4 yuan, the monthly interest payment is about 1400 yuan less, and the total interest payment is 771,000 yuan. In 30 years, the interest payment will be 500,000 yuan less .
In this case, many people will feel that it is very unfair. The same is housing loans, why is there such a big gap? This is actually a change in the housing regulation policy. Housing loans are written in black and white and cannot be defaulted, so what should I do?
first, early repayment . Find a way to raise funds to pay off your home loan so you don't have to pay high interest rates. However, the amount of mortgage that most people bear is too high to be able to repay in advance, so if they can repay part of it, they will repay part of it.
second , change room . Sell the house and buy a new one, but it is also very troublesome to move various taxes and fees.
Especially if some people want to buy their own family’s house by using their left hand instead of their right hand, there are problems such as taxes and fees, moral hazard, etc., and they must be carefully considered. However, refinancing can actually lower the interest rate.
Some new houses are still off-plan, especially if we have corresponding loan repayment records, we may not be able to enjoy the interest rate discount for the first home loan. Changing rooms is also a lot of trouble.
Third, actively negotiate with the bank. After several years of repayment, some banks adjust the loan contract according to the supply and demand of the market, but whether the negotiation can be concluded depends on the face.
It is worth reminding everyone that: some people say that you can " refinance ", so be careful not to be deceived. Generally speaking, this kind of refinancing is to convert housing loans into operating loans through mortgage loans, and some are consumer loans. The repayment time of consumer loans is short, and business loans must have specified purposes. Especially for business loans, once the bank finds that they have been used in violation of regulations, they will be withdrawn and may even cause the house to be auctioned.
Note that the so-called "intermediaries" are not so kind. Although the service fee and handling fee on the surface are relatively low, you are often required to provide a sum of money for turnover, and this money is likely to be deducted as a handling fee. Since the loan itself is illegal, we can't explain it clearly.
To sum up , buying a house is a major event in life, so don’t be impulsive. It is difficult to convert the 6.5% mortgage interest rate directly to a low interest rate of 4.25%. The general suggestion is that if you can repay the loan in advance, repay the loan in advance.