norin565 发表于 2024-2-15 17:06:11

4 keys about the TIN and APR to understand your mortgage

If there are two concepts that you should be very clear about before applying for a mortgage, they are the TIN and the APR. To do this, below we give you 4 keys about the TIN and the APR to understand a mortgage and get it in the best conditions.

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4 keys about the TIN and the APR in a mortgage
1. What is the TIN and where does it come from?
The TIN, or Nominal Interest Rate, is what you usually call the interest rate on a mortgage . “A fixed mortgage at 3%”, “at 2.1% + Euribor”; that is the TIN, that percentage.

In the case of a fixed mortgage , the TIN has no loss, since it is a single value, the percentage of the interest rate. On the other hand, in variable mortgages , the TIN is made up of the Euribor plus a differential chosen by the bank. It is calculated, therefore, like this:

TIN of a variable mortgage = Euribor + differential

Recommended reading:   Housfy's Euribor forecast graph for 2024 and 2025
2. What is the APR and how is it calculated?
The TIN is a crucial variable in a mortgage, but it is not the only one. You must also take into account the frequency of payments, the repayment period and other secondary costs. That's what the APR , the Annual Equivalent Rate, does.

When you use a mortgage comparator , you will see in each offer Grenada Email List the percentage of the TIN and the APR, and that the APR is always higher than the TIN. This is due to what we have already mentioned: the APR is calculated from a formula that includes, in addition to the TIN, other variables that increase the final cost of the mortgage. Specific:

You can guess the third key about the TIN and the APR to understand a mortgage yourself. Is the TIN or the APR more important? If the APR includes the NIR and other variables, it is clear that the APR gives a more complete picture of the cost of the mortgage.

That is why banks are obliged to show APR data to clients as a measure of transparency. The TIN can be a very nice percentage, but behind it lie other costs that the client must know to make a truly informed decision.

Housfy's mortgage simulator has the APR formula integrated. Enter the variables that the simulator asks for (amortization period, TIN, savings, etc.), and along with the monthly payment, you will see how the APR changes depending on the data you enter.

4. Aspects about the APR to take into account
First of all, you should keep in mind that the APR is more reliable in the case of fixed mortgages than in variable mortgages . With a fixed interest rate, the APR will be the same in the first year of the loan's life as in the last, but the same will not happen with a variable interest rate. The TIN is updated every year according to the Euribor, and with it the APR.

Secondly, although the knowledge that the APR gives you is very complete, it is not total, since it only takes into account bank expenses . In addition, you must calculate the notary, registry or agency expenses, and the inclusion of certain commissions that some banks include and others do not.

The true usefulness of the APR, in the end, is to be a very good criterion for comparing mortgages . Since it is a mathematical formula that all banks calculate the same, it serves as a common denominator on which to decide which option is more favorable.

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Get your mortgage without a shadow of a doubt
Although we are all familiar with it, a mortgage is actually a very complex concept. Therefore, one of the main concerns of Housfy Mortgagesmortgage intermediaries is to resolve your doubts.

They negotiate directly with the banks and present you with different options. But before taking any step, they explain them to you in detail and as many times as necessary. This way, when you choose the most convenient option, you will know exactly what you are choosing.

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