What are interest rates?

ME PARECE BUENA CONTRIBUTION INTRODUCTORY. LIFE IN ANY CONTRIBUTION IS HUGE!

ANY CONTRIBUTION IS HEALTHY. Is a good introduction to the topic.

A few questions: Today, the stock market drops in August 2007 by subprime mortgage. Central banks inject money to stop the X-shaped Euribor loan to other banks.
Who raises the Euribor? Is not that the ECB itself? .
If you have pumped money instead of the Euribor will continue to rise because they think they are going to shoot the delay, and that people will get their money lest they "paralyze" the bottom, or warehouse.
And anyway, the European interest rate is lower than American and English, and if they say that our loans are more solid, because they do not rise?

Valor Euribor 22/1/2008, 4.305%, without the ECB lower interest rates, the Federal Reserve with its lower by 0.75 points today, put pressure on interest rates begin to fall in Europe

I must say that the worker will always be a worker, left neck lift people have thrown cabeza.Mucha has the pool when speculation and banks and government were one, because there máximo.Pero exploit it now by saying this is acabo.Digo Secilla one reason, when I bought my apartment was the interest rate to 7.5 OPV in 1997 and now I get cheap money was going to the bank and say what I want here is whether that money goes usted.Que cielo.Mucha falls from people have been guided by the social mass if one buys a house, I too, if one buys an apartment on the beach I tambien.Ay Spanish Him work no longer remember where we came for three decades ago when he bought an apartment to live was what más.Y now 30.000euros car + bike + apartment + tonteria.Nunca shirt must be removed no matter how well you have because you always have to have more than one, and that is the quedomina the situation.

Why the economy with Aznar went so well and with Pedro Solves, as happened in 1995 is so wrong? Hiding this mysterious character? Happen in Spain as in Argentina?
I understood that someone like me to answer.
Thanks

# 7, Francisco

Curious and juicy question.

To see who answers ....

A Mi what really worries me is the poor quality of work, some years ago major trade unions fought for bienetar the worker, are today enjoying the hidden government funding, which in turn allowed to do what entrepreneurs ETT want and what they feel like it.
unfortunately the ETT are today already employ more workers even though they are expensive, employers hire them to exploit more workers, although in addition there is a convention of the ETT that in theory says we have the same rights as employees of companies, it is not at least in the ETT that I am.
Since we do not charge the hours as the template, premium or charge, we take time to work, put that to them they feel like, and also the welding maquis not have a 90% extraction of fumes, and the committee Company is aware of this and does nothing because the categories are purchased by unpaid in most cases, and if the workers of the ETTs we complain, the day these new unemployed.
Today I am charged a paltry salaries, charged less than 15 years ago making it practically mismo.con the difference that before was 40 and now 54, going from bad to worse and now we do not have to pay for water, light, and we do real magic to eat each month, government and banking, we are crushing and the unions know this and do nothing, it is shameful what is happening in our country.

As I understand it, the difference in interest rate for example is 4.25 and the euro inthe Hibor the 5.30. melo can someone explain

sergio good question, it's something I've always wondered. What if interest rates fall lower the Euribor?

Hello, to see if someone can solve a question I have, ...
Why in the last 30 years interest rates have risen from 18% to around 6%? Where can I read about this? You've had a discussion with my father about it and would like some research to see who was right.

Hello everyone,

the interest rate is set by the ECB in Europe. is the "price" that give the money and is the cheapest you can find.

The reason that fixed either value depends on many factors that are complex to analyze. the easiest to understand is this: if the interest rate is low means you can "buy" cheap money and be happier. people consume more (I mean they can borrow money more easily to buy a car, for example), buy more and drive up prices and hence inflation. To control inflation the ECB raises rates.

Of course, to raise interest rates and lower consumption of production enterprises (eg a car manufacturer) has come down to maintain the profit margin. down production almost always involves firing people. Then there are always more factors, but come on, more or less well understood.

For Charlie and Sam> as the Euribor is the interest at which banks lend money to each other. It is now high on the crisis and have assumed the risk that many banks giving mortgages (among other things, not to mention the risk of investing assets in banks). as it turns out that people do not pay the banks are left with the houses, but as with so many homes on the market even worth the money paid by them, so that banks do not have much cash. and have little cash, if you provide it pays dearly. therefore generally if the ECB interest rate rises, the Euribor rise and if the ECB lowers the Euribor rate will fall, but as the price of petrol when the oil rises.

The Euribor is calculated daily at 11 am. banks tell the Reuters news agency which is the interest at which banks lend money to others that day and Reuters calculated the average. end of the month to calculate the average of the month which is what you plug into the mortgage when you touch review.

For marine-> then there is the issue of economic cycles. Sometimes things go well and is favored by lowering consumption rates. other no crisis of any sort, that of today is fundamentally sound financial status to which is added a decrease in consumption (high rates), but may be technological and affect a single sector or group of sectors (in the year Computer 2001, suffered a political crisis stemming from the 2000 issue, in 2000 we invested heavily in information technology to overcome the supposed effect and in 2001, with all the investment made slowed the subject. But in that year dropped from Euribor 4.5 to 3.2) ... also if a country is undergoing an industrialization process as happened in Spain of 50 onwards the rates will be high and desscendiendo as they begin to reap the fruits of such industrialization (to industrialize money a country has to go somewhere and as you do not know how to finish the thing because they put expensive) ... when we had the peseta rates were fixed by the Bank of Spain but operations with other countries involving a currency exchange and therefore a risk that raises the rates. anyway in the last 30 years rates have fallen from 18 to 6 consistently, but have gone up and down cycles, although the overall trend. is that

I think that this story is a simplified version of things. there are a thousand factors not see or understand, if not all Serious analysts of Bank of Spain. sheet that I let go.

regards, Maikel

I would like cleared me in my receipt of mortgage loan
it means.
rate 5.794
cer% 5.948

Hi,

CER (Cost Effective Remaining): It is equivalent to the APR of the loan.

With the APR of a financial product you consider the return on money at the end of life of the loan.

In the case of a mortgage you have some associated costs such as lodging and expenses%% cancellation fee. When you say the mortgage is such Euribor + o, 5 and 4.78% APR. At that time you used the APR to compare loans among themselves, for example between two equal loans of Euribor +0.5 but one of APR and a 4.75% APR 5% have to go to 4.75% as the APR will mark the level of effort you're doing on the mortgage (more or less, come).

When you begin to repay the loan obviously has already paid the cost of bringing up the effort that you have left to do is minor. Then stop and start TAE called called REC, and see you.

SAD when you put your money in the bank (or contract account Matias Prats orange ...) you are interested in as high as possible because it is more money per year they'll give at the end of the year. But if you lend money to better yourself the lowest possible because it is more money that you give your bank to fatten their profit.

regards, Maikel

I see that mostly people are happy that interest rates fall, because they are mortgaged or other loans I have in my case the truth is that I'm not so happy because of course the end of the year I lost enough money because to lower interest rates on bank deposits down ,,,,, but good as they say it never rains please everyone, for me as if they want to upload it till 10 or 20 percent or more.

Hi,

Man, that's true, but only halfway. the products you have a fixed term contract are not (in principle) why change its profitability, although the rates down. If it would be a problem in quotes recruit new products with low interest rates, because they'll offer less return (in the beginning too), but of course you can always take more risk and earn more. I think not actually lose money because the rates go down, but leave it to win over the high rate scenario.

regards, Maikel

A JORGE. There really is such a variety of investment products where it really is not entirely true your statement. I say "entirely" because it would be impossible to deny that if the Euribor is at 10% you are going to offer higher pay for your term deposit which, if 2%. But for the individual who needs only one product financing, personal loan or mortgage. The vast majority are covered by this variable, especially the mortgage. Therefore I think it more beneficial to society (and I say no economy, inflation and other) a one Euribor reduced to 10% given the real economic situation today and the level of debt. It is my opinion.

Hi Daniel I give the reason that banks apparently have hundreds of products in which to invest your money this clarissim even with more interest than the deposits but from afar, but of course the more interest you in these products as to assume more risk i always tend to be products that you invest your money to a certain length of time if you want a higher interest me I've been offered several vezes variety of products, so they prefer in my case that the interest rate that a month ago estava asta to 4.25% was maintained well or even go up but not without exaggeration something like ice in my previous comment, what is clear in this life is each look for our own interest they smile a few others cry quando, quando others cry i guess they smile others is law of life.
It is also true now that most people are heavily indebted by mortgage personal loans credit cards i rest, but the problem is that most people stretch the arm sleeve i have just paqgando end one way or another If you can not have a proper floor for rent can live, if you can not have um buy a Mercedes to a Hyundai Seat is not to say the least price for those vehicles from these two brands, if you do not you can buy a plasma television Then get a normal or if you can not afford dinner at a restaurant for dinner 5 forks normal one, I really think this company has absolutely no control, I know many cases like these that I have i explained many problems people are wanted on their own, un saludo daniel.

Hola buenas

In January this year went up the mortgage m m m imagine q this January will revisit, my question is what month Euribor I apply? The mean December? the 4th of each month is Cundo m is the mortgage thanks

hi

jose am maikel the question of just above m can help you?

hi.
December 9 I charged the mortgage and is the month when my review, I wanted to know if you take the average Euribor in November or December. thank you very much

hi.
jose I am with what we mismo.a algien ayuda.normalmente see if if you went up the mortgage in January, the revision will make the month of December.

I have to pay the interest on a loan of 1051 € familiar to me quickly in 1980, without agreeing as seririan debuetos. in 2007 gave them to him and not as I do for pay or as they were from year 80 to 99. How should I add them? I could explain with some examples?
Thank you very much, a greeting rosi

Hello Jose,

for review of the mortgage is usually used the Euribor BOE officially published in the previous month. A specific example is better: a mortgage I signed my 27th, so all 27 of the month I reached the recibito. semiannual review and the bank is going to report on the review date. in this case I received a letter saying that the review will be on 27 November, so make me review the Euribor October (what a pity, because had not yet fallen so far). But be careful with one thing and if it had signed on the 12th, to say one day, I apply the Euribor would be September because October is the Euribor published officially on 20 November (the date of publication of one-month Euribor is always around the 20th of next month).

In your case if you signed on January 4 will be expected with the average of November with what I think you're in luck because the Euribor Nov. 2007 was 4.6 and 2008 will be rather than 4, 5

Paula you're like me, with October, so if your six-monthly review is your turn a little rise and if the review is because the annual quota will be slightly higher.

Regards, Maikel

Hi Maikel:

Thank you very much for your aclaracion last year was the first SM reviewed the mortgage and I do not get any cards just scare the 4th of January and the fact the mortgage firm in November but in December allegedly had not paid any bill although q at the end if I did but I came in January revision.

Thank you very much for helping me, and I will comment that this has been all but do not trust a hair.

Anyway the best way is to ask directly to the bank they're not going to say without any error, because not quite understand you. in your case, signed on 4 November in what would be the first installment in December and not in January, unless some particular case. I would apply the Euribor published at the time of signature or maybe one that was agreed in advance (sometimes you say the first 6 months at a fixed rate of 4.75% for example)

So you can do is look at your receipts or bank's website on your personal area (if you offer this service) where you put the nominal interest rate. A subtraction is the differential value that you are applying and you know that you applied the Euribor last time. Then you go to website

http://www.hipotecasyeuribor.com/euriborano.php?ano=2007

which is a page where they publish the Euribor Daily and monthly averages (this very well and is very intuitive) and look if you applied the September or October or November 2007, which is where the doubt . Your annual review is as if you applied the Nov., 2007, as your date is every November in regards to Euribor.

That there is luck.

Regards, Maikel

maikel hello.

Thank you very much for the answer to my question, just curiosity was already in the bank will tell me much better but if as you say, I think I applied the November signing the mortgage in January.

Well thanks to the lowering of the deposit that I Euribor contract and it gives me a very juicy interest is going down the drain, making my annual income are going to be lowered considerably and with them the consumer, so I'll have to tighten their belts and spend less, so that what is good for some is very bad for others.

Good afternoon, along with the question of Paulo and Jose, I signed the mortgage on November 30 so if I understood well I applied the boe published in October, my question is not applicable pq novimbre average. Q If I apply the October I can do to implement the novimbre mean?
thanks and forgive me if I repeat the question.

Hi Iria,

you apply the average October because November is not official until it is published in the Official Gazette and take about a month.

The possibilities are rather limited negotiate because not being a new mortgage and take payment inertia not going to change you and if you change it will always be in exchange for something (money) and you are staying the same.

Another option is to change the mortgage bank in January or a bit later, but well, I think is more mess and gives more headaches.

In my opinion you have to think that it sometimes hurts you but others will benefit you, for example in my case the last time they used the previous month benefited me and hurts me now. Is it bad to go to a variable rate.

In any case mood, and better times ahead. Today I read an estimate then of those who never met in a year that could see Euribor of 1.9. Namely ...

Regards, Maikel

Maikel Hi, thanks for your response I see that this year I'll be stuck with the rise. resignation and little more.

Greetings, Iria

hi,

I reviewed the mortgage of March 27 this year 2007, the Euribor has been applied: 4.793, but I see that this value corresponds to the month Euribor December. Is that correct? I thought it was the previous month, ie February.
Thank you.

Hello Neus,

I can think of two things, or that you forgot to subtract the differential (which is actually 4.793 Euribor + spread your rounding) or in your mortgage contract appears that you reviewed annually in accordance with the official rate published 1 January each year that is casually December. Look at it to see and tell us.

Regards, Maikel

hola que acer ria question ipoteca payment of 980 euros but I just say x 1220euros Suvir to me if the Euribor low rise x fa help beforehand thanks

I would like to know why and if it is normal for banks especially mine suvirme devan of the mortgage if the euribo this vajando. x example.
I paid 950 and my revicion was on November 24 had a 6.25 and they interest me the monthly suvieron to 1135 when I digueron that revicon grab a look at the interest rate of 2 months before the revicion in vase of it is if you or I suve vaja. thanks for your attention

NOTA DEL ADMINISTRADOR: Tu comentario ha sido transformado a minusculas. Desactiva el Bloqueo de Mayusculas cuando escribas en esta bitacora, por favor.

Hello Ronny, and Rose,

if it is possible to turn up the quota despite the Euribor down. Look at the date on which the review touches you and you will see that you probably played with the Euribor September or October, which was still high. In the case of Rosa surely has touched you check with the October or even September, now is not the official publication date in the Official Gazette of these months, although it is possible that if the review is 24 November each with the Euribor October.

We must differentiate between the date you paid the first bill with the fee already revised and the official date of revision. If what you're looking at is that on November 24 you got a receipt with the new fee of 1135 € the review was with the Euribor almost certainly September.

Take a look at comments # 24 and # 26 which explains this further.

As for the justice or injustice is to turn up the fee when the Euribor low, because the truth is that the rules of the game that we signed with the writing of the loan. You mentioned earlier that what sometimes benefits others around us to their disadvantage and vice versa. # 28 Jorge's friend was upset with some reason for their loss of purchasing power with the situation of lower rates and is absolutely right. I said, it always rains please everyone.

Regards, Maikel

Hi Maikel,
Thank you very much for your reply. Very nice.
I've been going and I detail which tells me the information I have:
"Reference Interest Rate": 4.793% "
Publication Date: 22-01-2008
Differential agreed: 0,750 points
Resulting nominal rate = 5.543%

I do not understand is because they take as reference the December Euribor (published in January) if I signed on 27 March. In addition, the mortgage contract does not figure to be reviewed annually in accordance with the official rate published on 1 January.

Again, many thanks.
Greetings,
Neus

Hail,
Per tutti coloro che l'andamento osservare necessitano di Tassi di interesse dei principali to riferimento presi dal mercato finanziario, one risorsa desideravo segnalare che ho trovato molto interessante.
http://www.mutuoeprestito.com/quotazioni_euribor.asp
http://www.mutuoeprestito.com/quotazioni_eurirs.asp
Le sezioni dedicate ai grafici per anno e per period with chiarezza consentono di osservare tendenze him.

Hello Neus,

you apply the Euribor is dieciembre effect of 2007 and published on 22 January.

The officer in February, which I think they should make you account was published in BOE on March 24 with resolution of 18 March. You can download it here (click the pdf version):

http://www.derecho.com/l/boe/resolucion-18-marzo-2008-banco-espa% F1a-month-make-index-public-official-reference-loans-mortgage-rate-variable-for - acquisition-housing /

Your signed on 27, so that is what should apply yourself, because it is the force when your signatures. However, mortgage contracts are drafted in advance and the bank approves the loan you previously to concede and that could occur several months before the actual signing. It may also be that during the first year has been agreed upon in any way refer to the January 1, 2007 (probably in advertising loan). In my case I paid a fixed rate the first 6 months or Euribor resembled the moment, but in any event is specified in the deed of mortgage.

At this point and the information that you'd better consult your bank, for sure there is something that escapes us. What I ask is if you described the answer because I really am curious.

Finally, sure they are right (always manages to have it) but if you do not have to claim them the difference you paid more and if you also want to play a little nose requires that you pay the nominal interest given your account the last year because the money they would have paid more, you could have had in the bank generates a profit (short, but yours)

Regards, Maikel

Maikel thank you very much,
I'm going to ask ... and I say what I hear.

Another little thing ... it is possible that in writing the mortgage there is no reference to the Euribor? As much as I look, I find no record!

Un Saludo,
Neus

Hello Neus,

should have two deeds signed before a notary on the same day, one of the purchase and sale of the home (original) and a loan (simple copy, the original is the left bank). In any case you should have a document explaining the conditions agreed with the bank (at least a contract between the parties)

Regards, Maikel

hi

meant that I was good to the bank to see what my mortgage because I played the revision in December and asked if I could take the average of November and they said yes. Tocharian octubre.digo me of this in case someone can ayuar.

Hi Maikel,
thank you very much again.
We have already made the query about the issue of Euribor applied and have "committed" to tell us next week. I'll tell you. Although advanced and have suggested that indeed the December Euribor is not what we should have provided. I guess they needed time to find a convincing explanation ...
Now, I'm scared .. for we have no contract signed, the simple copy says only that there is a mortgage with this bank and makes a small mention of the Mortgage Act and does not specify the conditions (do not throw anything). Furthermore, I see not a single stamp or signature of the bank. I suppose we require that document, right?

Un Saludo,
Many thanks for your generous support.

Maikel,
Would you please send me the link facilistaste the other day but with the publication in the Official Gazette of the Euribor for the month of December and January, please.
Would like to have the correct documentation.
Thanks :-)
Neus

Hi all, I wish someone enlighten me what is the initial nominal interest.
My parents have this mortgage for a long time now and I'd like to understand.
Amount requested: € 80,000
initial nominal interest 6.5%
Euribor + 0.75

Thanks in advance.

Hello Neus,

on this page have classifieds by date:

http://wwwa.bde.es/clf/resultados.jsp?pag=1&tipoEnt=0

in this one, the BOE of January to December (Always bring the note of the BOE is going to impress more)

http://www.derecho.com/l/boe/resolucion-16-enero-2008-banco-espa% F1a-month-make-index-public-official-reference-loans-mortgage-rate-variable-for - acquisition-housing /

And in this one the BOE of January:

http://www.derecho.com/l/boe/resolucion-18-febrero-2008-banco-espa% F1a-month-make-index-public-official-reference-loans-mortgage-rate-variable-for - acquisition-housing /

About your mortgage several things: when you signed? Is this a subrogation of an existing mortgage of the former owner or a builder? The latter would explain a lot.

Then, it is clear that you did before a notary, I have to look at mine, but it must have a registration number and the number of collegiate notary. Of all these things must have a record, you will not have the original copy may be that after signing the copy sent to you no simple or you forgot to pick it up, not to see if I look a little and you say something. And the rate applied is that somewhere has to put it, can not be arbitrary!

If you apply the mortgage law to tell you I believe (note, I am not a lawyer or an expert) applies this (view pdf version, more comfortable)

http://www.boe.es/g/es/bases_datos/doc.php?coleccion=iberlex&id=2007/21086

it is a badge of Act 41/2007, of December 7, laying
amending the Law 2 / 1981 of March 25, Mortgage Market Regulation and other rules of the mortgage and financial system,
regulation of reverse mortgages and insurance agency and establishing certain tax legislation. and finally comes another glass plate on the 33 valence amerca (I promise).

It modifies a stack of previous laws and the scrum is brutal. ahora bien, dice algo superconcreto que te aplica y viene en el Capitulo I artículo 1 y en el Capítulo VI artículo 11 que es que por ley están obligados a documentarte por escrito las condiciones de tu préstamo con absoluta claridad. Yo no me la voy a leer entera porque tiene pinta de ser muy aburrida pero puede que a vosotros os suponga un punto de partida, eso si comprueba previamente lo que te dije de la subrogación.

En fin, con este tema hay para hacer un doctorado. Generalmente se aprovechan de nuestro desconocimiento, por eso debemos armarnos con toda la información que esté al alcance de nuestra mano y hoy día con internet eso es realmente fácil. Lo dificil va a ser que llegueis a tratar con quien verdaderamente os tiene que dar las explicaciones o sabe realmente las condiciones en las que se os otorgó el crédito.

Buena suerte y no dejes de actualizar novedades.

Saludos, Maikel

Hi John,

el tipo de interés nominal inicial es el que te suelen aplicar nada más firmar el crédito, en el primer periodo de revisión. Después, una vez se produce la primera revisión (anual o semestral) te aplican el euribor más un pequeño diferencial de interés, en tu caso el 0,75.

En esta misma página encontrará más detalles sobre el euribor, qué es, cuando se publica, cual es el que te aplican en las revisiones y una página donde consultar el histórico de valores

Saludos, Maikel

muchas gracias Maikel, resolviste mis dudas.

Hola me gustaría hacer la siguiente consulta a ver si alguien me puede ayudar:
Llevo 6 meses con una hipoteca, en teoría era euribor + 0.35 que resultaba 5.170, ahora me toca la primera revisión, en teoría sería el euribor a 29 de noviembre (imagino que sería la media de dicho més) más un diferencial de 0.70, y según la propuesta del banco quedaría en 5.948. No comprendo de donde ha salido la cifra del euribor, puesto que por más que busco no encuentro ninguna cantidad que se aproxime al 5 y pico. Alguien sabría valor de donde sale el valor de referencia?