Reduces and opens doors to discounts of 1000 euros on commission

He Euribor today drops to 3.508%. He does this a few days after the meeting held European Central Bank (ECB) in which interest rates were not affected. The decision was expected and is now an indicator that most floating rate mortgage In Spain, the slow but unstoppable de-escalation continues. Today’s data still stands. minimums year, and this opens the possibility for mortgage holders who renew their mortgage in July this year to benefit from installment discounts that in some cases could exceed €1,000 per year.

on average for July The Euribor rate currently remains at 3.555%, down just 4% from the previous year, making the year-on-year difference the highest in 13 years, which also contributes to a significant reduction in mortgages that are renegotiated annually.

reduction of mortgage payments It’s been a slow process and not as steep as mortgage holders who extended their mortgages at the start of the year would have liked – they even paid more in March – but the path is set to continue downwards, experts say.

As expected, the ECB kept rates unchanged. We should pay close attention to this message and read between the lines of what the ECB President said: Christine Lagarde

after a meeting at which the organization kept interest rates at 4.25% after cutting them last June. Experts have already noted that new drops will not wait, at least not until after the summer.

How much will mortgage rates fall in July?

For now, everything about the Euribor rate cut, albeit small compared to last year’s big hike and pending a new ECB meeting, is good news for mortgage holders.

So,How much will mortgage rates fall in July?? According to iAhorro’s calculations, someone who took out a variable mortgage in July 2023 for €150,000 with a Euribor rate of 4.149% and whose payment was €796.43 per month with the current revision (Euribor is 3.5%) will now pay a monthly payment discounted by €49 per month, or in other words, up to €588 per year.

If we take the same example, but for a mortgage with an initial amount of 300,000 euros, we see that the discount will be 98 euros per month, 1176 euros per year.