Mortgages, because now the fixed rate is more convenient (but it is not easy to obtain it from the banks)
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Mortgages, because the fixed rate costs less than the variable one
In meteorology it is called thermal inversion. It occurs when temperatures at altitude are higher than those at sea level. Something similar is happening on the mortgage market, with fixed rates that cost less than variable ones. An atypical phenomenon because variable rates are linked to the trend in the cost of money in the short term while fixed rates are linked to the long-term rate and common sense is enough to understand that if I lend money for a longer time, I run more risks and I should have to pay more interest. tall. So for a 20-year mortgage of 140 thousand euros for the purchase of a house worth 200 thousand. with a fixed mortgage you pay around 834 euros (3.8% effective rate) while for the variable one you need 30 more (4.2% effective). On the 30-year loan, the fixed rate costs 3.75%, with an installment of 648 euros, the variable one requires 40 more with a rate of 4.25%.
Read also:
– Mortgage of 140 thousand euros, compare the installment with the fixed and variable rate: bank offers
25 Apr 2023
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