LOANS FOR HOUSE PURCHASES ARE THE MAIN OPTION FOR MOST PEOPLE TO BUY, ESPECIALLY WHEN THE PRICES ARE HIGH. RECENTLY, HOWEVER, AS THE LPR RATE FOR BORROWING MARKET QUOTATIONS HAS FALLEN, MANY PEOPLE HAVE BEGUN TO CONSIDER CONVERTING EXISTING MORTGAGES INTO LPRS. DOES THE MORTGAGE RATE OF 5.391 TP3T WORTH THE LPR? THIS WILL BE ANALYSED IN DETAIL。

do you want to turn ipr at 5.39

FIRST, IS THE MORTGAGE RATE 5.391 TP3T SUITABLE FOR LPR? WHEN CONVERTING EXISTING MORTGAGES TO LPRS, THE KEY IS TO SEE THE BASIS OF FLOATING INTEREST RATES. FOR EXAMPLE, ASSUMING A MORTGAGE INTEREST RATE OF 5.39%, WHEN CONVERTED TO LPR, THE CORRESPONDING FLOATING VALUE IS 59 BASIS POINTS, I.E. 5.39% - 4.8% (THE IMPLIED BASE RATE OF LPR). SIMILARLY, IF THE INTEREST RATE IS 5.88%, THE FLOATING VALUE IS 108 BASIS POINTS (5.88% - 4.8%). IF THE ORIGINAL DISCOUNT, SUCH AS THE REAL INTEREST RATE OF 4.65%, IS THE CONVERTED FLOATING VALUE IS 15 BASIS POINTS. EVEN AFTER CONVERSION, SOME INTEREST RATE PREFERENCES CAN BE MAINTAINED。

HOWEVER, THE CONVERSION OF MORTGAGES TO LPRS IS NOT ENTIRELY WITHOUT RISK. THE VOLATILITY OF INTEREST RATES IN THE LENDING MARKET IS UNFORESEEABLE, AND THE CHOICE OF LPR MEANS THAT WHILE IT IS POSSIBLE TO ENJOY THE BENEFITS OF THE REDUCTION, IT IS ALSO LIKELY TO RUN THE RISK OF HIGHER RATES. IN OTHER WORDS, YOUR LOAN COSTS COULD INCREASE。

SECOND, THE FREQUENCY OF LPR ADJUSTMENTS ON MORTGAGES ALSO REQUIRES ATTENTION. SPECIFIC ADJUSTMENT CYCLES MAY VARY ACCORDING TO THE REQUIREMENTS OF EACH LENDING BANK, RANGING FROM A MINIMUM OF ONE YEAR TO A MAXIMUM OF THE DURATION OF THE LOAN CONTRACT. GENERALLY, LPR RATES ARE ADJUSTED MONTHLY, BUT LPR-BASED MORTGAGES ARE NOT ADJUSTED MONTHLY. IF THE CONTRACTUAL ADJUSTMENT PERIOD IS ONE YEAR, THE MORTGAGE RATE WILL REMAIN UNCHANGED DURING THAT YEAR UNTIL THE NEXT ADJUSTMENT PERIOD IS RE-PRICING IN ACCORDANCE WITH THE UPDATED LPR。

SUMMARIZING THE CONVERSION OF MORTGAGES TO LPRS WOULD SAVE COSTS WHEN INTEREST RATES FELL, BUT WOULD ALSO HAVE TO TAKE THE RISK OF POTENTIAL INTEREST RATE INCREASES. WHETHER OR NOT TO CONVERT NEEDS TO BE CAREFULLY DETERMINED ON THE BASIS OF INDIVIDUAL LENDING AND MARKET TRENDS。