Mortgage Interest Rate Reduces

2012-12-25 10:28:45 市政府办公室

“Good news! The ‘mortgage slaves’ can breathe easy since the new mortgage interest rate policy will go into effect from next month. My monthly payment reduces by 166 yuan. Everyone of you can show off your reduction here.” This post, sent by a Yichang net friend Calm Koala, caused a hot discussion online.

This year, the central bank has cut interest rates twice. The benchmark five-year lending rate has been reduced form 7.05% to 6.55%, the cultimate drop of 0.5%. The bank staff said that the majority of commercial banks and buyers come into an agreement in "individual housing loan contract" that if the loan period is over one year, once the benchmark interest rate has adjustments, then the lending rate will be adjusted on January 1st every year. Therefore, the new mortgage interest rate will start to implement from next month for most “mortgage clan”。

It is understood that, according to the housing price level in Yichang in recent years, the loan amount for most “mortgage clan” is from 300,000 yuan to 500,000 yuan. The level of interest rates is generally classified into two kinds, one is a 85% discount rate, another is benchmark interest rate.

Reporter uses mortgage calculation software to calculate a bill for us. Taking the case, the loan amount of 500,000 yuan, the loan period is 20 years and payment in equal principal and interest, for example, if you apply a loan of 500,000 yuan for 20 years before June 8th this year, calculated on the basis of current benchmark interest rate of 7.05%, you would repay 3,891.52 yuan each month; if the new benchmark interest rate of 6.55% executes from next month, you would repay 3,742.6 yuan each month. That means you could reduce payment for 149 yuan. However, if you have the same loan situation, the rate would be 5.99% with 85% discount, and you would repay 3,579.99 yuan per month; after the reduction of interest, you would repay 3458.53 yuan monthly at the rate of 5.57%. You could reduce payment for 121.46 yuan.