Euribor rates and mortgage payments
This past Friday, February 13 Euribor rate reached its minimum value, reaching 1.94% share. The amount of the mortgage rate is not decreased, in some cases has even increased. Why?
The reason is the system that is used to calculate the 'Euribor . It 'a fairly complex mechanism that essentially creates a delay of several months on the actual calculation of the index. The rate of adjustable rate mortgages are in fact calculated on the values that were reached Euribor duranto last fall.
Therefore, if the banks were based on Euribor rates last December, the rate was 2.93%.
As if they were based on the average of the last 6 months, the rate would rise to 4.63%.
That's because the Euribor rate falls, but also the rate of the mortgage .
