April 2006
You're watching the articles of Euribor for the month of April 2006.
The Euribor, the kind that are awarded most mortgages in Spain rose in April to 3221%, which is at the highest level since September 2002 and represents the seventh consecutive monthly rise and a new cost of mortgages, according to provisional data should confirm the Bank of Spain.
Specifically, the Euribor rose 0.12 points over the 3105% recorded in March and 0.96 points in relation to 2265% where it was placed in April 2005, which will translate into a rise in shares of appropriations mortgage to be reviewed annually with the new rate in the coming days.
Specifically, half a mortgage of 120,000 euros granted for a period of 20 years with a spread of 0.60 points over Euribor, the monthly premium would rise from about 657 to 715 euros, an increase of about 58 euros to months and 696 euros for the whole year.
Further increases
This new rise in the Euribor up to 3221% in April means placed at the highest level since September 2002 when this indicator stood at 3236%.
The indicator continues to show an upward trend since it began the month at 3.25% and ended at around 3.30%. However, the increases have not been scheduled throughout April, and even arrived a few days to fall slightly.
Analysts consulted by Reuters expect the Euribor falls in summer at 3.5%, and even some companies that provide analysis of closing the year at around 4%.
However, analysts believe that the increases will moderate gradually and will not be as intense as in recent months, to see the next move of the European Central Bank (ECB).
Written by Carlos Lopez on April 28, 2006 0 comments
Read more articles on Euribor.
Bankinter has begun to market a new type of mortgage that offers the possibility to pay only interest each month and defer the repayment of capital until the expiration of the product, but also enables anytime partial or total cancellation.
Said today entity, if you choose the option of returning to the capital hit at the end of life of the loan, the owner pays each month "between 30 and 50% less than if traditional hire a mortgage, because in that case the shares would be composed of principal and interest.
In addition, the interest rate on the mortgage fee is fixed Light during the first six months and then become variable, with an annual review that takes as the Euribor reference to a year plus a differential for each client agreed with the bank.
The maximum amount that can be requested in one of these mortgages, which can not exceed 70% of the value for taxation of housing, is 550,000 euros and the repayment period can be up to 30 years, says the entity.
Euribor.com.es desaconsejamos entirely from this type of mortgage because of the risk involved in an environment of rising rates
Written by Carlos Lopez on April 27, 2006 with 1 comment
Read more articles on Euribor.
The revolving mortgages (or rotary) are a type of consumer credit at a cost similar to mortgage loans, they can ask those who have already written off part of a provision for housing. In these cases, banks offer their customers the option of having a consumer loan for the depreciated value of capital in mortgage lending.
Such loans are specially designed for people who want to buy a home without dispensing other expenses, such as purchase furniture, appliances, a comprehensive reform, and so on.
The reduction in the interest of these loans is counterbalanced by an interest rate slightly higher in the mortgage, it should consider the prospect of spending well to check its profitability.
Written by Carlos Lopez on April 24, 2006 0 comments
Read more articles on Euribor.
The Spanish Mortgage Association warns that 93.24% of mortgage loans contracted last year were variable rate referenced to 6 or 12 months, with only 0.62% of subscribers to fixed rate mortgages.
The association says that the greatest interest rate risk relates to first home buyers in the first access and with incomes below the national average. They could see their share increased to a maximum of 34.8%, while for Standard loans with an income level above the average expected the maximum increase in the quota would be 24.6%. In addition, Madrid is the autonomous region with an increased risk of price hikes in contributions, followed by the Basque Country and La Rioja, with Extremadura in the polar opposite.
Written by Carlos Lopez on April 20, 2006 with 1 comment
Read more articles on Euribor.
Recommended reading of the article: Should lengthen the term of the mortgage?
The Bank of Spain governor Jaime Caruana, yesterday warned of the risks of mortgages that adopt modalities "creative" to defer payments of principal or extend the life of them. Caruana said that the growth of the Spanish economy this year will be "slightly below" that recorded in 2005 and opted for a "gradual and orderly reduction" of the current overvaluation of house prices. The Bank of Spain confirmed yesterday that the Euribor stood in March 3105%, its highest level since October 2002.
Jaime Caruana reiterated yesterday, during his speech at the Forum Five Days, the "concern" that the Bank of Spain has been saying since late last year by offering mortgages with little traditional characteristics. For example, those that have a long-term depreciation of some banks offer up to 50 years-or granted grace periods, are paid only the interest-up to ten years.
Caruana warned entities to provide more information to customers about these products because "some families may find themselves with major surprises" in case there is rising rates too much or lengthening the life of their mortgages.
The governor of the Bank of Spain recalled that the level of indebtedness of households has grown in a few years to amount to 110% of disposable income. This pace of growth, he said, is not sustainable "so long." Moreover, he warned that the types of mortgages are not going to stay as low as at present and that households more vulnerable to price increases will be most indebted, "which often coincide with those of lower income levels and greater propensity to spending. "
The Bank of Spain confirmed yesterday that the Euribor, the benchmark for setting mortgage rates, reached in March 3105% 2914% compared to February, its highest level since October 2002. In the last twelve months, has risen seven tenths.
Caruana said that the families will be in "perfect condition" to meet its commitments, provided it does not deteriorate the employment situation. As for the price of housing, said that the latest official figures already show a slowdown in the pace of growth. If this trend takes hold in coming quarters, he said, the scene of price adjustment will be that of a "gradual correction of the overvalued today."
Written by Carlos Lopez on April 19, 2006 with 3 comments
Read more articles on Euribor.
'Oldest
There are no more new items
