Are mortgage costs too heavy for your family budget? Then don’t miss this discount!
For many citizens, turn on a mutual represents one of the most important financial decisions of their life. This tool allows you to realize a common dream, that of buying a house, by deferring the payment over the years. However, before choosing a mortgage, it is essential to know the mechanisms that regulate it, such as interest rates and the various types of loans available.
The mortgage can vary in terms of duration, amount and, above all, of interest rate. This can be fixed or variable, depending on the applicant’s needs and risk appetite. The fixed rate offers greater stability, since the installment remains unchanged for the entire duration of the loan, while the variable rate adapts to market trends, being able to both increase and decrease over time.
Another relevant aspect is the choice of the bank or credit institution to contact. Each institute can offer different conditions, and this is why comparing offers becomes fundamental. Many borrowers rely on consultants or brokers to evaluate the best option, also taking into account additional costs such as opening commissions, mandatory insurance and notary costs.
Finally, in addition to the choice between fixed or variable rate, there is also the possibility of opting for mixed solutions. These mortgages provide a fixed rate part of the period and a variable rate part, offering a compromise between stability and adaptation to economic conditions. All these factors combine to determine the overall cost of the mortgage and, above all, the sustainability of the monthly installments for the borrower.
Reduced interest rates: a new opportunity for borrowers
The European Central Bank (ECB) has recently reduced interest rates for the third time in a row, lowering the deposit rate to 3.25%. This move has an immediate impact on mortgages, with a drop in the cost of borrowing positively reflecting on borrowers’ repayments.
According to some simulations, citizens who already have a mortgage a variable rate they will be able to benefit from a reduction in monthly installments, with savings that could vary between 13 and 30 euros per month, depending on the amount and duration of the loan. New mortgages will also become more accessible, further boosting demand in the real estate market.
Happy couple bought a house (Depositphotos photo) – financecue.it
Monthly mortgage payments are reduced
The ECB’s decision does not only concern variable rate mortgages, but will also have repercussions on fixed rate mortgages fixed rate. Although the effect is less immediate than variable mortgages, new fixed rate loans could benefit from more advantageous conditions, with lower starting rates than in previous months. This could attract those who prefer the security of a constant payment, allowing them to obtain favorable terms.
The real estate market could also benefit from this scenario. The decline in rates in fact, it makes financing more accessible, encouraging those who were considering purchasing a house to speed up their decision. The increase in demand could, in turn, spur a slight recovery in the real estate sector, giving a boost to the economy as a whole.
