Euribor - What is is?

Euribor is the interest rate at which a large number of European banks do provide short term loans to one another. Banks which borrow money from other banks can use these funds to provide loans to other parties. In fact, Euribor is the purchase price a bank does have to pay for a short term loan. Many banks do lend money by providing mortgages. Once someone decides for a short term loan or mortgage (short fixed interest rate period), the interest rate which has to be paid does often follow - in a lot of European countries - the Euribor-rate. Once the Euribor-rate increases, the interest which has to be paid increases as well and vice versa. At many companies there is a direct relation between the two. At the moment one decides to opt in for a mortgage based upon an adjustable interest rate (also know as a floating rate or variable rate mortgage), it is announced beforehand that he or she will pay the Euribor-rate (often the Euribor 1 month or 3 month rate) plus a fixed commission. For example, Euribor +1% Many Banks in Spain use the 6 month or 12 month Euribor rate. Up to date Euribor data is available

aplanmortgages.com

Spanish Mortgage Solutions