Barometer of mortgage rates
Every month, thanks to our partner Empruntis,invites you to discover the best mortgage rates applied last month throughout France. These interest rates allow you to get an idea of the current market.
The different types of real estate loan rates
The interest rate of a mortgage is the sum paid by a borrower and is intended to remunerate the lending institution. The rate, expressed as a percentage, is defined when you sign a loan agreement. Depending on the duration of the loan, the interest rate varies, that is, it increases on a long-term loan and decreases on a short-term loan.
Fixed credit rates
The percentage of a fixed credit rate is the same throughout the life of the loan. As a result, the borrower does not incur an interest rate increase, which allows him to repay his mortgage thanks to constant monthly payments.
This mechanism has the advantage of preparing the borrowers to repay the same amount every month, hence a certain security, since they can plan their budget in advance. However, if market rates go down, you will not be able to benefit from lower loan rates as well.
Variable or revisable credit rates
The variable credit rate or adjustable rate is set according to a money market benchmark, which is the Eurozone Eurozone rate. Since the variable rate is indexed to inflation, it increases and decreases according to it.
This variable rate allows you to take advantage of lower market rates that will mechanically lower your interest rate. However, the amount of your monthly payments will fluctuate each time, so you do not know in advance that it is refunded each month.
We talk about variable interest rates “capped” when the mortgage provides for an upward limitation of the overall change in the interest rate.
Mixed credit rates
In this case, the mortgage rate varies according to two periods:
- The first period is fixed rate (often lower than a standard fixed rate);
- The second period is capped variable rate (approximately plus or minus 1%).
The rate of wear is set each quarter. Credit rates should not be higher than this legal loan rate, which is meant to protect the consumer.
The annual percentage rate (APR), now known as the annual percentage rate since October 1, 2016, sets the total cost of the mortgage as a percentage. It is calculated according to several data:
- The nominal rate used as a basis for the calculation of loan interest. It is determined by the long-term market rate for a fixed rate loan, or in the short term if it is a variable loan or a revisable loan;
- The amount and rate of the borrower insurance;
- The cost of guarantees (mortgage or surety);
- Ancillary costs (file fees, notary fees, intermediaries …).
The essential data to take into account because it allows you to know the total amount of the credit which is proposed to you. The credit institutions and banking institutions have the obligation to present it in the information document presented before the contract is signed.
The APR must serve you to compare the different offers of real estate loans. The lower the rate, the more interesting the loan for buying your home!
Compare home loans to find the best rate
Thanks to a mortgage simulation, you will have access to a multitude of Martin Chuzzlewitment real estate offers to buy your new home. In just a few minutes and after filling in some information about your project and your profile, different quotes will be presented.
In the midst of these different credit offers, keep a careful eye on the APRs of each proposal, so you can compare them to each other. This credit comparator will allow you to find the best real estate rates for a cheap mortgage based on your project but also your profile.