The difference between floating interest rate and fixed interest rate
The biggest difference from the fixed interest rate is that the LPR interest rate is floating.
Fixed interest rate means to keep the loan interest rate until the loan position is paid off, and the loan interest rate will not change due to the adjustment of LPR in the future.
The advantage of fixed interest rate is that if the LPR interest rate rises in the future, it will not increase the loan interest; The disadvantage is that you can't enjoy all kinds of preferential policies of LPR interest rate.
As the name implies, floating interest rates will change. Based on the LPR of 65438+February every year, the loan interest rate for the next year will be re-priced with reference to the LPR of 65438+February every year.
The advantage of floating interest rate is that it can float with the future LPR and enjoy the preferential policies brought by LPR; The disadvantage is that if the LPR increases in the future, the loan interest will increase, which will increase the repayment pressure.
There is only one chance to choose fixed interest rate or floating interest rate, and you will be accompanied to pay off the loan after the choice, so be very cautious! How to choose fixed interest rate and floating interest rate?
If you don't agree to the automatic conversion, there is still a chance to go back.
According to the announcement of the bank, if the customer does not actively switch before August 3 1 day, the bank will switch to LPR pricing mode in batches for the customer. If the customer participates in the batch conversion and then disagrees with the conversion result, he can transfer back through mobile banking or negotiate with the loan handling bank before 65438+February 3 1 (inclusive).