The Euribor in February will reduce mortgages by 60 Euros per month.

The Euribor, the main mortgage reference rate in Spain, will give mortgage holders a new break. It has closed February at 0,594% and it will reduce the price of mortgage installments (with annual revision) around 60 Euros, reaching nearly 750 Euros per year.

Although the rate has registered its second consecutive increase after reaching its historic minimum (0,549%) in December, it is still far from the level reached in February 2012 (1,678%). A difference which brings a discount in the mortgages.

An average mortgage of 120.000 Euros for 20 years and annual revision will see its installments reduced in around 62 Euros if it is revised in February. The periodic payments will go from 646 Euros to 584 Euros.

This discount will be much less in those mortgages with biannual revisions. Those which were revised in August, when the Euribor was at 0,877%. In those cases the monthly installments will go from 600 Euros to 584 Euros.

Looking to the future, the Euribor looks downwards. Since the ECB maintained interest rates at 0,75%, this rate has not ceased to decrease. It accumulates15 days with a downward tendency and seems ready to surpass its historic minimum reached in December. (…)

Source: El Mundo