decisions taken Thursday by the European central Bank’s new offer economic benefits to Italian families who wish to take out a mortgage or apply for funding. For the promise of President Mario Draghi that the low interest rates of the euro area will remain at such levels for an extended period of time (analysts estimate until 2018-2019), facilitate the loans and mortgages for the next 3-4 years. In practice, those who today asked a variable rate mortgage, whose repayment is linked to the Euribor rate, not only would benefit from a further cut of 0.05% rate announced on Thursday by the ECB but, more importantly, they’ll know the rate (and relative installment payable) would remain stable for a period of at least 3-4 years. In addition, the new European legislation, recently incorporated in Italy, led by seven to 18 months (not necessarily consecutive) before the bank can ask for a renegotiation of the loan or sale of the property and, moreover, the latter procedure , it is now much easier and more beneficial to the subscriber of the mortgage than before. Here then is a mini-guide to choosing your mortgage and the most suitable loan to the needs of each one and figuring out how to move in the event of subrogation. With the premise that the table published on page and compiled on data collected from Mutuionline.it group, photographing a situation still fluid. Not the groups offers are also present, such as Mediolanum Bank, which are not analyzed by the specialized portal.
advantageous fixed rate – The fixed rate mortgage is the first favorite Italian. In 2015, the combination of data of Abi, the Bank of Italy and the different online providers (including Mutuionline), about two-thirds of the requests for new loans is in fact fixed-rate preferred by those who do not like risk. In this particular phase of the economic cycle, a wide audience of families are attracted by very low interest rates to the point that it is difficult (if not impossible) to assume lower rates in the coming years. On the other hand, if it is true that a fixed-rate mortgage involves fees (and therefore the amount of the monthly payment) higher than that of a variable rate mortgage (with other things being equal), it is also true that the amount the installment of a loan at the current fixed rate is significantly lower than that of a loan for the purchase of a first house made only 24 months ago. For example, a fixed rate mortgage from 200,000 Euros with a twenty-year turned 24 months ago (EUR 1,160 per month) cost about 110 euro per month in more than the same mortgage now required (installment from 1,050 € per month): the savings are equal to over 26,000 Euros total in 20 years. The underwriter of a variable rate mortgage prefers to sleep quiet but, to do so, agree to pay an installment of at least 50-150 Euros more than it should have to pay a floating rate product. Whereas the latest hypotheses speak of European interest rates that will start to rise no earlier than 2018-2019, the choice of fixed rate involves a risk reduction but involves a considerable cost.
the subrogation if the loan comes to 30 years – families can take advantage of the legislation on the portability of the mortgage (subrogation) through which it is allowed to replace the outstanding mortgage with a new mortgage, canceling all the transaction costs , including notary. Among the limitations: the subrogation involves refinancing the exact outstanding amount of the mortgage, without the possibility of amendment of the amount. Replace to save. Moreover, while the banks that made the loan (old) are obliged by law to transfer the loan to the new bank, not all banks are obliged to grant a subrogation: also there are a few lenders interested in substitute of mortgages of less than 50-60,000 Euros, or with remaining maturities of five years and less. If it is true that a lower rate is a benefit in terms of savings, it must take into account that difference applies only on the outstanding principal and the remaining period at the end of the mortgage. In addition the rate charged on loans to subrogation is, with the same bank, slightly higher than that offered by the new constitution mortgages: is the approach taken by the bank to return the technical and legal fees. For these reasons it is important to do a quote to verify the operation advantage. For example, at a 5.5% rate mortgage to 200,000 euro turned in February 2012 would result in a monthly payment of 1,376: If you were to opt for a mortgage subrogation for the remaining 16 years at the rate of 3% for the remaining 173,200 Euros capital to be refinanced, the monthly payment would drop to 1,137 Euros which would result in a saving of 45,888 Euros.
variable rate if it agrees to 10 years – Despite the adjustable rate mortgage leads a lower installment than fixed rate as a function of the fact that the interest rate is less than a percentage point less, the Italian families who choose it are a minority: about one third of all loans taken out in 2015. the advantage competitive variable rate mortgages than fixed-rate should also increase in light of the fact that the ECB has decided to reduce its key interest rates to zero (from 0.05% the previous year): according to analysts until 2018-2019. Who lights a variable rate mortgage might as well take advantage of the “discount” compared to fixed rate mortgage for a period of time sufficient to guarantee him a treasure that, even in the case of a sudden rise in interest rates in the euro zone after 2018-2019, afford him not to lose than the fixed rate mortgage. This is valid for loan contracts up to 10 years for loan maturities greater this competitive advantage of variable rate mortgages to expose families to the risk of a spike in rates with exorbitant rate to pay. In conclusion, those who prefer the variable rate link to take advantage of the savings on the monthly duration of between 50 and 150 Euros per month depending on the amount and duration, but remain exposed to the mid-market rates to the upside risk long-term: the advice is to calculate a lower installment to one-third of household income in order to sustain any increase in the years to come.
personal loans – in the second month of this year the number of requests for loans by Italian families has increased by 11% compared to the same month of 2015, driven by targeted loans (for the purchase of cars, motorcycles, furniture, electronics and appliances as well as other goods and services eligible for financing, including systems for home, medical expenses, gyms and leisure) have scored a + 24.0% increase. It is confirmed, according to experts, that Italian families are now much more careful about borrowing: the crisis of 2007-2008 has alerted the expense of the Italian directing them to position themselves on goods and services needed by avoiding requests for their own sake. As for the average amount of the requested loan, those relating to loans taken together, amounted to € 8,430, a figure that drops to 5,672 Euros for those finalized. But do some practical example, using the prestitionline.it site. A worker born in Milan in 1990 and fixed-term contract by the inclusion in December 2014, which required 10,000 euro to finance the wedding, should support a monthly rate from 200,86 € for 60 months, equal to a percentage rate (APR) of 7.87%. A trader in Rome, since 2005 and wanted to take 10 thousand euro to renew the furniture of his shop, would pay € 232.79 per month for 48 months with a rate of 5.81% APR. A retiree of 70 years of Bologna, which stopped working in 2010, which required 10,000 euro for buying a used car should return € 304.22 per month for 36 months with a (APR) rate of 6, 41%.
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