The Euribor is the benchmark to which they are linked most mortgages, when talking about the interest it charges a bank for a mortgage , we talk about the price of the index plus a spread that applies the financial institution is normally expressed form EURIBOR + 0.80 ( or the applicable margin ) in this article is because you characterize this type of mortgage can be calculated as the interest paid .
The differential and the Euribor
The front differential as in the introduction is part of the interest charged by the financial institution along with the benchmark which is the Euribor , the latter varies and is listed as the demand for money and the parameters chosen by the European Central Bank , or ECB , the ECB will raise and lower interest rates as the economy of the member countries in the European Economic Union , although sometimes the benefit of a tomb may be for others, to control inflation will climb rates to stimulate the economy and types be lowered .
Normally Spain mortgages are tied to this index variable with semiannual , quarterly and annual mean that the mortgage payment will go up or down as I placed the EURIBOR , always considering fixing floors and ceilings although financial institutions are beginning to declared abusive and these are under continuous review .
When comparing whether a mortgage is cheap or expensive , you have to take into account the differential that applies in the same , in the market you can find spreads ranging from 0.45 % to 2 % , and these last truly higher to hire them.
One of the best ways is to consider annual percentage rates or APR , but you also have to consider hiring some products forced the bank to hire.
Among some aspects to consider addressing this type of mortgage is how much they charge for the repayment of principal or early termination fees , these loans often have the French system in which at the beginning of the mortgage within the quota pay is almost all interest and at the end of it all otherwise everything is almost fee.