Today we continue with another series of terms or economic concepts that are precise to know to confront safely the negotiation of a mortgage. Yesterday we had the opportunity in the first introduction on these mortgage terms, of speaking about names like capacity of indebtedness, principal, pay-off period, commission of opening or commission of early cancellation, in addition to what it is a lack period.
Today we bring to you new economic terms related more straight to the interest rate that they will apply to us.
- TAE
It is the Annual Valuation of Equivalence, which is the effective type really applied to the financial operation as soon as they were included the expenses and the ocmisiones applied. It has, therefore in account the regularity of the payments, the nominal interest rate, the term and the initial commissions.
Here you can read more information about TAE.
- Interest rate
Although he is named this way, really it is a question of the Annual Nominal Interest rate, equivalent to the additional quantity that receives the bank on the principal one for giving us the money.
- Margin or differential
Imagináos, for example, the offer that has extracted Direct Office, the Mortgage Habitual Housing, which applies like interest rate, the Euribor+0,39. This percentage that applies of more over the Euribor (in this case, 0,39) is the margin or differential. Bear in mind that the savings banks do not use like types of reference the Euribor but other indexes that are usually major, and in these I marry, the differential is minor, therefore you cannot compare it. It is only comparable when the type of reference is the same.
- Fixed or variable interest
When we negotiate a mortgage we will be before two possibilities: to hire a mortgage to fixed type or to variable type. When the quantity or percentage to be applied to the loan stays inalterable during all his life, we will be speaking about mortgage to fixed interest, while in case of mortgages to variable interest, this type fluctuates according to the market and the economy.
Usually, the interest fixed only it is necessary to choose when it is a question of short-term operations, although an analysis of the general economic situation is always advisable at the time of deciding according to the forecasts that there should be on the money market.
- Regularity of review of the interest
You must know that in general the interest rate of the mortgages is checked annually, although everything depends on the negotiation. Obviously, this review only takes place in the cases of mortgages of variable interest.
- Reference indexes
There are the values that are cited as an example to calculate the interest rate that is going to be applied to the mortgage, adding also the differential to him previously mentioned. In the previous example, the reference index was the Euribor, which is usually most used. Nevertheless there are others like the index MINT much used by the savings banks, or the IPH.
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We want to put the economic and financial actuality within reach of your hand, with a simple and direct language, so that we all could comprise it. The real estate market, the Stock Exchange, the different options to invest, you count and bank deposits... So that you know what to do with your money.
- Spain is the country with more deflation risk
- The slowness in maxima for 12 years
- Housing, it continues the collapse
- Movements to receive deposits
- The Euribor keeps on beating descent records
- Week of breather and increases in Stock Exchange
- SICAV, an alternative of investment
- The unknown side of the mortgages in Spain
- Loans 2.0, credit between individuals
- Price war in the feeding
- It continues the fall of the interest rates and the Stock Exchange
- Measurements of the government against the unemployment, without consensus
- The bank crisis in Stock Exchange
- The unemployment in Spain and the bad economic management
- The economic crisis generates opportunities
- The labor calendar of 2009
- TAE, meaning and calculation
- Interprofessional minimum wage 2009 and minimal pensions
- The IPC of the rents: calculation and update
- Forecasts of the Euribor for 2009
- The best deposits of January, 2009
- The Euribor: calculation and meaning
- Evolution of the interest rates and his consequences
- Where to put the money in epochs of crisis
- Pension plans 2008 of the Santander
Very useful his article, especially for those that like me, we are informing ourselves about the first mortgage.
Comment for Gem18-02-2009 14:54