In September 2017, the return is looming with average rates remaining stable. They are in fact almost the same as during this summer.
Average rates for the month of September 2017
7-year credit: rate of 1.07%
- 10 years: 1.18%
- 12 years old: 1.35%
- 15 years old: 1.46%
- 20 years old: 1.68%
- 25 years old: 1.93%
What is a mortgage rate?
This is a percentage that corresponds to the interest applied to the mortgage, which serves as remuneration to the lender. The interest rate is set by the latter according to various parameters (10-year OAT indices, borrower profile), and may also be subject to regulation. Indeed, the rate of the PEL (Home Savings Loan) or the conditions of the PTZ (Zero Rate Loan) are determined by the State.
How to benefit from the best mortgage rates?
First of all, it is very useful to carry out a real estate loan simulation and to compare at the same time the offers of several banks and credit organizations in order to get an idea of what can be proposed to you, according to your project. and the file that you have made up. Also, by using the services of a broker, you save time in your efforts: he accompanies you, helps you, advises you and quickly presents the best offers on the market. It is thanks to the competition of the banks that you will be able to access conditions of credit which are attractive.
Some definitions of terms used in mortgage lending
Nominal rate: this is a rate applied to the borrowed capital and makes it possible to calculate the interest on the loan.
The rate of wear: maximum legal rate can not be exceeded by banks when they grant a credit.
The fixed rate: mortgage rate does not fluctuate throughout the repayment period of a credit.
The variable/revisable rate: rate evolving according to the reference index. This type of rate can be “capped”, that is to say that it can not exceed a certain limit in case of decline, as in case of increase.
The APR (annual percentage rate of charge): rate necessarily mentioned on any mortgage offer, including the borrowing rate, mortgage insurance fees, warranty fees, application fees, opening and closing costs. account management, the cost of estimating the property by the bank. It is this rate that makes it possible to precisely fix the cost of a home loan and therefore to be able to better compare the different loan proposals issued by the banks.