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Mortgage multidescries

    The mortgage multidescries is a formula invented by the financial organizations to offer to the possible clients, an attractive alternative at the time of formalizing its hypothecating loans.  The publicity and the references of this type of mortgages, are every time majors, had coverall, to the progressive increase of the indebtedness of the families, by the ascents of the types of interest and the indices of reference of the hypothecating loans. The increases of the price of the money, or type of interest and the IRPH, leads to them to important increases in the quotas of its mortgages whenever they are reviewed. In order to palliate these effects, they are tried to create attractive formulas that make diminish the amounts that are due to destine to the payment of the quotas and in this sense they appear the mortgages multidescries.

    The objective of the mortgage multidescries is to lower to the interests of the loan, using like reference a currency that this depreciated with respect to the Euro and types of interest of the country of the currency is also lower than those of the Euro. In the mortgage it multidescries, is used the Libor that is an index published daily in London. Each country has its types of interest, for that reason to each of them a different Libor will correspond to him. To Libor it will be necessary to add the corresponding differential to him, like it happens with the Euribor. One of the best advantages of the mortgage multidescries is that if a currency is made excessively hard, or raises the price of the money in the country to which the currency belongs, we will be able to pass us to another currency that this depreciated and types of interest of the corresponding country are low. That reduction of the type of interest will imply a reduction in the quota. Therefore if we want to know whatever we would pay of quota using another currency that not outside the Euro, we would have to watch Libor corresponding to the country of the currency and to add the differential to him that applies the banking organization to him.

     At the moment the Japanese Yen and the Swiss Franc are two currencies with low and undervalued types of interest with respect to the Euro, reason why they are two currencies with which we would substantially improve the conditions of the hypothecating loan. The operation in the mortgage multidescries could be the following one: if for example the bank grants 200,000 Euros to us for hypothecating loan, the day to notarize we would choose the currency that but agreed to us. If the chosen currency is the Japanese currency, the Japanese Yen, automatically, the debt of 200,000 Euros, would be transferred to its equivalent in Yens. Formulates it would be applied it of the compound interest using like type of interest Libor for the Yen, plus the differential that year the bank and we would know the quota to pay. The monthly payment would come in Yens and it would transfer it to the bank to Euros, reason why every month we would pay a different amount, following how it is the change of the Yen to the Euro then. According to the signed conditions, we will be able to change to another currency, for example quarterly, if the types of interest of the country of the used currency have raised considerably or if it has become hard with respect to the Euro.

    The mortgage multidescries, has interesting advantages, but also it entails some disadvantages and risks. We must be continuously pending of economic data, like the types of interest of the different countries, the evolution of different currencies, its revaluation or depreciation, etc. We must of these customary ones handle financial data and have future vision. If for example we have a mortgage of 200,000 Euros and the currency that we have chosen raises a 20% against the Euro, now our debt would be of 240,000 Euros, but, the one is the Euro that raises a 20% with respect to the currency that we have our mortgage, then our mortgage will be of 160,000 Euros.

    Also we must of knowledge that the commissions that are received in the mortgage multidescries are majors, and also is greater the differential than it is added to the reference index, in this case, Libor corresponding to the country of the currency, but even so, at the moment these majors expenses are well places setting, since the Euribor is much more high that the Libor of the Yen and the Swiss Franc for example. In addition in the mortgage multicurrency we must pay the commission corresponding to the currency change, since whenever the monthly payment arrives, our bank must happen of the chosen currency to the Euro. This commission usually is of a 0.2%, so for a letter of 1000 Euros we would pay 2 Euros more.

    We are going to compare a mortgage of 200,000 Euros to 30 years reference to Euribor and Libor corresponding to the Japanese Yen. Like the differential that is applied to the Libor it is major that the one that is applied to the Euribor, we are going to suppose Euribor + 0.50% and Libor + 0.75%. The 4.683 Euribor at the moment is to and Libor for the Yen to 1,15.

    Thus we have Euribor + 0.50 = 4.683 + 0.50 = 5,183. What supposes a monthly payment of:  1.096, 12 Euros.

    On the other hand, Libor (Japanese Yen) + 0.75 = 1.15 + 0.75 = 1,90. What supposes a monthly payment of 729.28 Euros.

    That is to say, a monthly saving of 366.84 Euros. We multiplied if it by the 360 quotas that suppose the 30 years, we have a total saving of 132,062 Euros. Evidently, this will vary much in 30 years, as we said the quota varies every month and theoretically we would change of currency whenever the conditions no longer were to us favorable.

    The two used currencies more are the Japanese Yen and the Swiss Franc. The Libor of the Japanese Yen is lower and allows a greater saving, but it is more volatile than the Swiss Franc, since this he is more stable and it fluctuates less in the time. The Euro, the Japanese Yen, the Swiss Franc, the American Dollar, English Libra, the Canadian dollar, the New Zealander dollar, is currencies that can be used in the mortgages multidescries. It agrees to inquire and to consult at great length before sending itself to sign a mortgage multidescries. It is interesting but it is necessary to know all the details in detail. Perhaps the financial organization offers a customized tutelaje to us through what advises to us free, for example informing us into the moment at which it interests to change to him to another currency. Also it can be advisable at certain moments for contracting a change insurance that it protects to us of possible sudden ascents, knowing that it will lessen the possible saving secured through the mortgage multidescries. Really, it is an interesting option with many advantages, but also we must know its risks and knowledge that we must be always informed into economic data that allow us to make the suitable decisions.


City Finances It leaves your commentaries 8 of October of the 2007
Friday, 04 of Julio of the 2008 to the 12:09: 05 A.M.

       I am I retrace steps to change of mortgage hpd, gustaria me ke would advise to me well, thanks, as well as possible trukillos, ciao

Commentary number: 3

Name: jordi

Domingo, 06 of January of the 2008 to the 12:43: 08 p.m.

       I have a mortgage for 2 years. Empezé paying 1080 Euros and after the revision after a year, I happened to pay 1218, that is said soon, but are more than 200,000 Ptas of the old ones. My mortgage formalizé since already I have been saying for 2 years, for 235000 Euros in 30 years. I change if me to a mortgage multidescries, pasaria to pay 840 Euros to the month, that is that the monthly saving would be of about 350 Euros, that also say soon, but is a saving of 70000 Ptas to the month, and a final saving in 30 years, if everything more or less follows equal, of 150,000 Euros, takes already, 25.000.000 pesetas. The question is that the present data vary and the yen is not so beneficial here against the Euro of 5, 10 or 15 years. The question is that to cancel my present mortgage and to contract one in yens, it has a cost of about 7000 Euros. These 7000 Euros the recuperaria in 1 year and a half paying the mortgage in yens, and all the others from here, serious benefit. Considering that 30 years is many, also it is necessary to consider that yes you are a little to the day of the types of interest and variation of the currency, in 5 years you ahorrarias 22000 Euros, that reducing the 7000 of gtos of change of mortgage, serian 15000, and I throw of not paying to every month 1200 Euros but 850. So by this rule of three, to the 10 llevarias years already saved 44000-7000=37000. In case the thing turns much, because you return to change the mortgage to Euros and it already is. To pay expenses again clear, but I doubt that this happens in the short term and evidently you will have had a quite numerous saving of every year paying in yens.

Commentary number: 2

Name: david

Monday, 08 of October of the 2007 to the 02:27: 15 p.m.

       The truth is that they give desire to send itself, but the banks do not offer much information either and possibilities of contracting it, are few those do that it, are rather intermediary companies. In addition that to be always pending, because not… What had to happen is that it lowered the euribor and thus we would not have to worry to us about as much roll or that they were the cheapest houses, because all the life paying by a house seems to me very strong. In the end you are enslaved of your house, or rather enslaved of which they become rich with our money gained with the sweat of our forehead and our health.

Commentary number: 1

Name: Toni

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The Eurogroup meets to face up of form together with the crisis
Germany does not see positive that the BCE raises the types of interest
Pedro Solbes indicates that Spain is far from an economic crisis
The mortgages raise, raise foods, raise fuels
The government will help in the extension of the term of the mortgage
The IMF glimpses a very negative economic horizon for Spain
The CNC initiates sanctioning investigations against several nourishing companies
Trichet moves away the possibility of reducing the types of interest
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The surplus of the Social Security will be superior to the 8,000 million Euros.
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The inflation reaches 4.1% of inter-annual variation in November
The rate of dilatoriness to stop paying the quota of the mortgage increases.
Secondly consecutive reduction of the Euribor. In November it descends to 4.607% (2-12-07)


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