Published by carratelli4 years ago

As reported in the Quotidiano Nazionale, 2018 proved to be a challenging year for mortgages, marked by mixed signals...

As reported in the Quotidiano Nazionale, 2018 proved to be a challenging year for mortgages, characterized by mixed signals. Indeed, the real estate market (a key driver of mortgages) is seeing very encouraging results. Sales in the first quarter of 2018 recorded a 4.3% increase, which is expected to continue in the current quarter. 

 

What are the types of mortgages and what are their benchmarks?

  • -The fixed rate mortgage It is set when the mortgage is issued and remains the same for the entire duration. Its reference parameter is the IRS (interest rate swap), which has been stable for months. Current levels allow customers to access a mortgage with very advantageous financial terms.
  • -The variable rate mortgage Instead, it is calculated on the basis of reference parameters, the values of which may vary over time. The parameters are'Eurirs (Euro Interest Rate Swap) and the Euribor (Euro Interbank Offered Rate), to which is added the spread (cost that the bank adds to the reference rate), to calculate the effective nominal annual rate.
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What is the current market scenario? 

The demand for new financing in the first quarter of 2018, as in 2017, was down by 10.3%, the main cause of this decline being the contraction of surrogates. Subrogation is a type of contract that provides for the transfer of a mortgage mortgage from the original banking institution to a new one. With the surrogate The mortgage can be replaced without canceling the old mortgage and without having to register a new one. In a current scenario, there are many variables; those who don't want to commit to managing their own mortgage should certainly choose a fixed-rate mortgage, which provides payment certainty. Those who want to take advantage of the current situation and pay a lower rate should instead choose a variable-rate mortgage. However, it's always a good idea to rely on a consulting service that, based on your availability and needs, will be able to provide you with the most suitable product and guarantee ongoing assistance throughout the process. 

 

 

 

 

 

Source: http://qneconomia.quotidiano.net/lesperto-di-credem/

Carratelli

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