Jarrah Wood Outdoor Furniture Sydney

Choice Mortgage rate



The choice between fixed rate, floating rate or mixed rate be customized according to the characteristics of the subscriber. The rate or extent of the interests that will be applied to the sum to be repaid, is certainly one of the most important elements to consider before you choose the type of mortgage . With
the fixed rate (now personally do not recommend) the rate of interest agreed at the signing of the loan remains constant over time, regardless of any fluctuation of the market (ie the rate increases but also of any discounts). It is a type of rate appreciated by those who have a salary employee, as a protection from unpleasant surprises in the future, but also by those interested in a loan not exceed 10 anni.In this type of loan the rate is always at least 1 or 2 points higher than for products with variable rates. The variable rate is instead linked to the performance of certain financial ratios, national or international, also called parameters indexing the most common is the Euribor. Once you set the index to be taken as a reference the bank will apply a credit (the spread), a kind of profit margin for the financial institution that goes from 1 to 2% in more. variable mortgages start, as mentioned above, a lower initial rate than fixed mortgages, but they do not know the exact amount of the rate after the first , let alone know the true cost of the loan. The risk of having to pay more if interest rates rise, however, is offset by the advantage of paying less if interest rates fall. The mixed rate is a new type of rate that is very prevalent in recent years: in the initial phase of the loan provides a fixed rate which then turns into after a variable number of years (or vice versa, starting a "variable "transformed into a" fixed "). Some products that provide the transition from one type to another is decided dall'intestatario rate of funding rather than be automatic. In this way we can continue to maintain the type of rate selected at the beginning for many anni.La mixed rate formula to divide the risks to the inevitable changes in interest rates because it offers the opportunity to maintain or change the rate initially chosen according to the evolution of the rates themselves.