Choose fixed interest rate LPR floating interest rate?

These are two completely different directions.

Choosing a fixed rate means you think the LPR will rise in the future, so you lock in your mortgage interest rate with a fixed rate instead of paying more interest when the LPR rises in the future.

The LPR floating interest rate is your inner automatic belief that the future LPR will be a downward trend, so that you can save mortgage interest payments in the future.

In the future, when our future economic growth slows down, our LPR will also decline, because slowing economic growth means that the return on investment of social funds will also decline.

It is easy to understand that when economic growth decreases, it is naturally difficult to make money.

The overall return on investment of social capital is declining, and the cost/interest rate of natural social capital is also declining. LPR is the pricing benchmark for all loan interest rates. That is to say, the cost of social capital is actually harmonious. LPR is a consistent choice for LPR.

This means that the mortgage interest rate is not a fixed interest rate, but floating anchored to the LPR.

Then many people worry about collusion in the future.

LPR keeps rising, doesn’t land interest rate keep rising?

This concern is understandable, but don’t forget to understand, but don’t forget that banks should also be regulated.

The Central Bank and the China Banking Regulatory Commission are not here to be vegetarians, let alone unilaterally break away from market supply and demand and raise interest rates. The market will not buy it, so there is no need to worry about this issue.

So, should equity mortgages be the option?

What about LPR?

I don't think there's really any need to dwell on this issue.

Whether it is a fixed interest rate or a floating interest rate, let me put it this way, the maximum interest rate for repayment will not be too high.

Even if you make the right choice in the future, a mortgage of 1 million, a term of 30 years, and a 100 basis point change in LPR interest rate will save you a few hundred yuan every year and save you 50-60 yuan every month.

How much impact will an extra or less 50 yuan each month have on your life?

Even, we stretched the timeline even longer.

If the mortgage you take on is 20-30, the results will be pretty much the same whether you choose a fixed rate or a variable rate.

Of course, different people may have different answers.

For example, if the mortgage amount is particularly large and the savings can go up or down by hundreds, then you really need to make an accurate choice based on your actual situation.