To explore the choice of interest rates for mortgages, which are often both floating and fixed, and each has its advantages and disadvantages, so the choice of interest rates depends on your specific circumstances。

The mortgage rate should be fixed or floating

IN THE CASE OF FIXED INTEREST RATES, THE ADVANTAGE IS THAT THE INTEREST RATE WILL REMAIN CONSTANT DURING THE LOAN PERIOD, AND EVEN IF THE LPR INCREASES, THE BENEFIT OF THE MORTGAGE WILL NOT INCREASE. THIS REDUCES THE RISK AND ALLOWS YOU TO HAVE MORE CERTAIN EXPECTATIONS。

ON THE OTHER HAND, IF YOU CHOOSE TO FLOAT INTEREST RATES, THERE IS A CERTAIN RISK, AS FLOATING RATES CHANGE WITH THE LPR. FOR EXAMPLE, IF THE LPR INCREASES, THEN THE INTEREST YOU'LL HAVE TO PAY WILL INCREASE. BUT IF THE LPR DROPS, YOU GET REDUCED INTEREST ON THE MORTGAGE。

This raises another problem. Is the mortgage rate a year? The answer is yes. If you choose the floating interest rate, then your interest rate is adjusted on the basis of the base rate, once a year. However, if the base rate does not change in the year, your mortgage rate will remain unchanged. On the other hand, if you choose a fixed interest rate, your mortgage rate will not change, no matter how the base rate changes。

In general, the choice of fixed or floating interest rates requires a view of their economic situation and their resilience to risk. I hope this article helps you make more comparisons to make the best decisions for yourself。