Agricultural Bank of China needs to go to the counter to confirm the choice of fixed interest rate. The stock mortgage pricing benchmark was converted into compulsory conversion, which was completed on August 3, 20201day. However, users have two conversion options, one is to convert to LPR+ floating base point mode, and the other is to convert to fixed interest rate mode, so users can choose not to convert to LPR, and not to convert to LPR is a fixed interest rate.

What is the impact of converting the benchmark loan interest rate into LPR?

When the benchmark loan interest rate is converted into LPR, the interest rate agreed in the original loan contract is invalid for the user, and the loan will be repaid according to the interest calculated by LPR in the future. If the LPR bonus is lower than the benchmark loan interest rate bonus, users can save interest, otherwise users need to pay more interest.

But it is impossible to estimate which interest rate is more cost-effective. After all, the interest rate in the market is constantly changing, and now it may go up if it falls.

The preferential interest rate of LPR loans is divided into several grades:

The LPR interest rate will be announced on the 20th of each month. The interest rate is divided into two grades, one is 1 year and the other is more than 5 years. This is actually very easy to understand. The shortest term of mortgage loan is 1 year, so the first loan term of LPR is 1 year. As for the second tranche, it is more than five years, and it is also because the agreed term of most mortgage contracts is more than five years.