Extended data:
According to the Notice of the People's Bank of China on Issues Related to RMB Loan Interest Rate, since 2004 1
From June 1 year, the interest-bearing and settlement methods of RMB loans shall be determined by both borrowers and borrowers through consultation.
In case of interest rate adjustment during the contract period, it shall be determined by the borrower and the borrower according to commercial principles, and can be adjusted monthly and quarterly.
Annual adjustment can also be used to determine the fixed interest rate. In other words, loans can be divided into floating rate loans.
And fixed-rate loans.
Fixed-rate loan means that the interest rate does not change with the adjustment of interest rate during the loan period; Floating rate loan means that the interest rate can be adjusted regularly according to the period agreed by both borrowers and lenders, and the specific interest rate determination method is freely agreed by both borrowers and lenders.
Cumulative calculation of loan extension period. When the cumulative term reaches the new interest rate term level, it shall be calculated according to the extension date.
Interest is calculated at the same rate listed on the extension date; If the new term grade cannot be reached, the interest will be calculated at the original grade interest rate on the extension date.
Since March 17, 2005, the methods of interest calculation, interest settlement and repayment of individual housing loans have been determined by both borrowers and borrowers through consultation.
Supplementary information:
One; Different interest rate levels reflect different policy requirements. When the focus of the policy is to stabilize the currency, the central bank loan interest rate should be raised in time to curb overheated demand. On the contrary, it should be lowered in due course.
The benchmark interest rate is the deposit and loan interest rate stipulated by the People's Bank of China for national specialized banks and other financial institutions. Specifically, the common people regard the one-year fixed deposit interest rate of the bank as the market benchmark interest rate index, and the bank regards the overnight lending rate as the market benchmark interest rate.
The market signal reflected by the benchmark interest rate, or the regulatory signal sent by the central bank through the benchmark interest rate, can be effectively transmitted to other financial markets and financial product prices.
Two: there are two kinds of interest rates stipulated in the bank loan contract: fixed interest rate; Floating interest rate.
In general, we often use floating interest rates (long-term loans are generally floating and short-term loans are generally fixed), because banks cannot predict future inflation and what the benchmark interest rate will become.
If it does not float, it will be risky for banks. For example, the benchmark interest rate of loans with a term of more than five years rises to 6%, while the agreed fixed interest rate is 5%, so that the deposit-taking interest rate is high and the mortgage interest rate is low, and the profit margin will be compressed and even lead to losses.
With the floating interest rate, it fluctuates with the fluctuation of the benchmark interest rate, thus locking in the profit space. For example, if the bank goes up by 20%, then this 20% will not change with the change of the benchmark interest rate, and the profit margin will always remain up by 20%.
The monthly payment calculated by the mortgage calculator is not the actual exact amount to be repaid (assuming the benchmark interest rate remains unchanged, the calculated amount is the exact amount of the monthly payment), and this figure will change with the change of the benchmark interest rate.