What is the euribor?

   The variable Euribor constitutes to worry for many persons who have formalized to mortgage to interest indexed to this index, since of his evolution it depends on all that will rise or lower (although lately this does not happen already) his monthly mortgage quota. It is an index of reference of mortgage loans, but it is not the only one, others exist like the IRPH banks or the IRPH boxes, Public debt, etc. the most well-known and used by the financial institutions at the steals of granting mortgage loans it is the Euribor. Let's see which it is his definition and that is what us Indian.

   Euribor: "Europe Interbank Offered Rate"; in Castilian it means "Europaean Type in the interbank offer". The banks belonging to the Europaean Monetary Union must use an index when they give themselves money, this index is the Euribor. Expert we comment, must continue his evolution, since big part of the mortgages is indexed to this index.

   The Euríbor is the interest rate that the banks recover version version for giving him money between themselves. East is calculated every day. How? The Europaean Bank Federation summons every morning 47 banking institutions of the Continent and rises the following question to them: at what price plow they ready to offer funds? The federation gathers the proposals of the banking institutions, eliminates those who excel themselves at the top or for below 15 % and with the rest it does an arithmetical average. This one you eat up it is the I value that every day marks the Euríbor.

   But in addition to the quotation of the Euribor and of other index-link of reference of mortgage loans, we must be hanging of which it is the differential that goes away to add to the index. If our bank offers us euribor + 0,50, and the quotation of the euribor, at the moment of formalizing the mortgage it is 4,66 %, then we must know that our mortgage praise will be determined by an interest of 5,16 %, since, euribor + 4,66 differentiates = + 0,50 = 5,16.

   We must be well taken advice at the steals of signing to mortgage they praise, knowing the different index-link, his evolution and listening and analyzing the different offers that the banking institutions offer us.