Posts Tagged ‘Mortgage multicurrency’
About Multi Currency Mortgage
It lies between those who find it difficult to access housing the confused idea that applying for a mortgage loan multi currency find the solution to all problems.
Indeed, taking a cursory glance at the numbers, we resolve that, a priori, are much cheaper than traditional mortgage loans in euro Euribor. The reasons that show a smaller monthly payments can be summarized as follows:
a) low interest rates of the currencies of reference for this kind of loans (usually the yen or Swiss franc) and the euro’s strength against them, and
b) the reference interest rate of these loans is Libor, Euribor but normally three months, which is far smaller than it is also less volatile.
On the contrary, we must not forget the huge risks involved in dependence on a loan and not just one interest rate, but also a currency. The user of this type of loan delivery euros to buy foreign currency, but as in any time there may be circumstances that strengthen or weaken macroeconomic currency, it may happen that the borrower has to pay more euros to buy the same amount of yen (or Swiss Swiss, or the currency in question). Read the rest of this entry »