The microbiological analysis of urine is 6It is true that the flights are usually longerSince the annual low point on 14 June at 5But most existed already before the crisisIf 80 of the turnover of the company EUR 1There is interest to analyze without delayThis is the reality the ongoing dialogue withFree commute in mercantilism or economic warNonagénaire the hidden wish is doing very wellFive years later his dearest wish is yet to achieveThe European Central Bank (ECB) continues its policy of very moderate rates. In early September, it has, unsurprisingly, decided to keep its main interest rate to 1, now so refinancing conditions in the euro at a level area historically low. Short-term rates, on which banks rely in determining the conditions of their variable rate mortgage, should therefore remain very attractive, especially the Euribor 3 months, which today is around 0.80 (compared to 5.40 in October 2008). The rate of the OAT 10 years is used, for its part, reference to long-term loans and therefore fixed-rate loans, down also, stabilizing 3.51 (compared with 4.80 a year ago). This bearish, more favourable to the revisable rate, movement was to reinstate the hierarchy between the two formulas. And revisable rate, time offside, find a gap in their favour of slightly more than 1 point. Over a period of fifteen years, a borrower with a very good profile can now get a 2.80 variable rate or a fixed rate at 3.90. Need to all agree a loan with reviewable rate Not so sure. Demonstration.
Remember the "subprime"
With a rate that will not change, the borrower is security. And, unlike the Anglo-Saxons, the French were always security: 90 of the production of housing credit take place at fixed rates. A rule which is not about to be dethroned. "Some banks are very well placed in rate fixed, reason for which the revisable rate become very difficult to sell, as borrowers have in mind the"subprime"crisis", said Maël Bernier, the spokesman of Empruntis. Why, indeed, opt for reviewable rate when fixed rates remain so expensive and so little risky The borrower master all parameters ready sound, whether rate, duration or cost since they evolve ever, that the loan either on fifteen, twenty or twenty-five years. As, during this time, inflation may return. It would all reimbursement payments. No possible regrets, fixed rates have, in addition, almost no chance to continue to decline. In short, for a credit of 200,000 EUR 3.90 over fifteen years, the monthly amounts to 1.469 euros and the cost of credit to 64.487 euros.
Non-negligible risk
Side revisable rate, the offer starts around 2.80. For a credit of 200,000 euros over fifteen years, the monthly payment is 1.362 euros and the cost of credit to 45.161 euros. The economy is in size, the overall cost of the credit is reduced by 19.326 euros! The choice of a variable rate is very tempting. Remains unknown: the evolution of the rate for the duration of the credit. So it will be reviewed after the first year.
As its name indicates, a variable rate climbs or descends through the evolution of its reference index, usually the Euribor 3 months or 1 year. At each review, the rate is recalculated on the basis of the index of the time, in which the Bank adds its margin (from 0.70 to 1.5 point according to the institution). The monthly payment or the duration of the credit (sometimes both an outbreak of rates) will be affected. The risk is not neutral. "Variable rates are valid only if we put on future cuts." However, in view of their current level, they cannot go back, says Ari Bitton, co-founder of AB brokerage. However, can focus from a short-term perspective. "For example, when we buy knowing that it will resell four or five years later." The gain is realized during the first years of the credit, says Sandrine Allonier, responsible for economic studies and spokesperson for MeilleurTaux. Indeed, at the beginning of the loan, the monthly payment is made up to 60 and 40 of capital. "
Take the example of two credits of 200,000 euros twenty years on, a consented to rate fixed 3.90, other rate reviewable 2.85 initially, then 3.50 the second year, 4 the third, and 4.30 4. After four years, the interest payments will be 29.074 for the loan with fixed rate and 27.014 euros for reviewable rate. The gain for the second is therefore to 2.000 euros. Beyond, difficult to predict how the rates will evolve.
In the long term, the benefit is reduced. Even with a footballer variable loan 1 point. Take the example of 200,000 EUR borrowed on twenty years at a rate of 3.20 footballer 1 point (i.e. a maximum of 4.20) and who, with a negative scenario, reached its ceiling as soon as the second year and for the remaining duration. The overall cost will then be 93.536 euros against 93.406 euros for a fixed rate at 4.10.
