He euribor registered the smallest increase in more than a year in October, standing at around 4.16%, but Variable interest mortgage payments will continue to rise, although with less intensity than in previous months. In this way, the main reference for loans with variable interest intended to purchase housing chains two consecutive months of increases. In September it stood at an average of 4.149% after falling in August for the first time in 20 months. In any case, the index appears to be on track to lose the 4% level.
With this evolution, the one-year Euribor moves away from the 4.2% level once the banks (this is the interest at which entities lend to each other) interpret that the rise in interest rates is nearing its end. At the last meeting of the governing council, the European Central Bank (ECB) paused the rise in the price of money, reaching 4.50%, which began in July of last year. Analysts expect the one-year daily Euribor to remain around 4%-4.1% for a few months. Although the hikes could have ended, the monetary institute has stressed that the price of money would remain high “for a sufficiently long period.”
Although there are variable rate mortgages that are reviewed every six months, most do it once a year. The installments rise if the Euribor is higher than a year earlier in the month that serves as a reference for reviewing the credit. The reason that the increases in quotas have begun to soften and will do so more pronounced in the coming months is, precisely, that the new Euribor levels are being compared with those of the second part of 2022, considerably higher. higher than those of the first half of that year.
In October of last year, the index stood at 2.629, meaning the differential is 1.541 points and, therefore, it is softening. In August this difference was 2.82 points and in March a maximum of 3,884 points. With this calculator you can estimate how much your mortgage will be.
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In a mortgage of 150,000 euros for 24 years with a rate of Euribor plus 1% that has the October data as a reference (normally those that are reviewed in December), the monthly payment will go from 780.90 to 909.24 euros, that is That is, 128.34 euros more per month and 1,540.08 euros more per year. For a loan of 300,000 euros with the same characteristics, the increase will be from 1,561.80 euros to 1,818.48 euros, that is, 256.68 euros more per month or 3,080.16 euros more per year.
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The increase is more moderate than in previous months. To understand what they have suffered in the last two years, the installments of the two credits used as reference were revised with the August 2021 data to 553 and 1,106 euros per month, respectively, which in two years they will have risen by 355 and 710 euros per month. That is, they will be 64% more expensive.
The CEO of CaixaBank, Gonzalo Gortázar, stated during the presentation of results for the third quarter that, with the current data, the forecast is that mortgage payments will begin to be lowered from the May data and that the Euribor will remain around to 3.2-3.3% in the next three or four years.
2023-10-31 14:55:49
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