Posted by: Bod AtoUpdated at : 12:58 AM
Tags: MORTGAGE LOANS
Mortgage Loans Index Rates - There are 3 types of IRPH (reference index of mortgage loans). Banks, the boxes and the whole of the financ...
Mortgage Loans Index Rates - There are 3 types of IRPH (reference index of mortgage loans). Banks, the boxes and the whole of the financial institutions. It is an average of the interest rates at which institutions are granting mortgage loans at that time, on the set of banks, boxes or the total number of financial institutions.
Therefore, the benchmark indices serve so when revising the interest on the loan is adjusted to the prices in the market already, as we have seen, these are no more than the average rate of interest that the money is being.
Remember that the 'differential' call is applied to the chosen reference index. The entities do this because they lend to a particular are at greater risk of non-payment to another bank, and to compensate for that risk, the entity is going to charge a higher price.
As already mentioned, the interest we are paying is changed every certain time, as agreed previously, eg. Semiannually, annually. Thereafter and until the new revision, the interest rate of the loan will be the result of adding the differential to the latest index of available reference which normally corresponds to the last month or the immediately preceding. For example:
If we have agreed the Euribor + 0.75% (differential), to review every 12 months, and the Euribor at the time of the revision is to 2.25%, then 3% is what you will pay interest for the next 12 months, until the next review.
Therefore, the benchmark indices serve so when revising the interest on the loan is adjusted to the prices in the market already, as we have seen, these are no more than the average rate of interest that the money is being.
Remember that the 'differential' call is applied to the chosen reference index. The entities do this because they lend to a particular are at greater risk of non-payment to another bank, and to compensate for that risk, the entity is going to charge a higher price.
As already mentioned, the interest we are paying is changed every certain time, as agreed previously, eg. Semiannually, annually. Thereafter and until the new revision, the interest rate of the loan will be the result of adding the differential to the latest index of available reference which normally corresponds to the last month or the immediately preceding. For example:
If we have agreed the Euribor + 0.75% (differential), to review every 12 months, and the Euribor at the time of the revision is to 2.25%, then 3% is what you will pay interest for the next 12 months, until the next review.
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Title : Mortgage Loans Index Rates
Description : Mortgage Loans Index Rates - There are 3 types of IRPH (reference index of mortgage loans). Banks, the boxes and the whole of the financ...
Description : Mortgage Loans Index Rates - There are 3 types of IRPH (reference index of mortgage loans). Banks, the boxes and the whole of the financ...