I’ll start with a post in which I comment that I think is worth remembering that the “comfortable” situation where we can find reviews of our mortgages, can change at any time and that therefore the family economy as the business, have a good margin for maneuver in terms of debt that we use, is essential to not meet with unpleasant situations in the future may be closer than we think.
All to review or have reviewed their mortgages this year, will have been a great “joy.” Its shares have fallen very relevant as long as they did not have a clause with a minimum rate of pay.
It seems obvious that sooner or later we will see the Euribor rise and therefore we find that our fees will rise again. Anyway I think it is good to remember above all not to “accommodate” to the rates we pay for our mortgages today. What is clear is that at least this year, the monthly expenditure that we have a mortgage and we pay (for now), will be considerably lower than last year and that’s always a joy.
I think the biggest problem that we have a very low Euribor forget this is the same. The worst thing that can happen is to have a “mirage” and forget that the Euribor now stands at minimum and that sooner or later rise. Short term may continue to fall or stay, but in the medium – long term Euribor rise. Hopefully nosuba with the same force and intensity as it did going down, going from highs to lows in a few months. If I go up so quickly, no doubt they would come again “ghosts” of the crisis more severe than experienced any economy.
As usual, the mortgages that we have a period of many years and most variable interest tied to Euribor plus a spread. We must bear in mind that we can not accommodate to the rates we pay today because when the interest goes up, our share will rise and therefore also our monthly spending. If our revenues are the same, maybe to “tighten” the belt could be worth, but as our income from falling further, either abruptly (loss of job) or moderately, our economic situation could be “bankrupt” .
One of the main reasons that caused the difficult economic situation faced by many businesses and many families today, this is precisely. He has been borrowing at low interest rates, adjust our accounts to such rates and monthly fees that accrue from the payment of our debts and therefore, not anticipating that when rates rise, our fees to be referenced to a type of variable interest would rise also. Besides borrowing was accompanied by the belief that assets were referenced to it eventually would be worth much more. It should be added that the employment situation did not think many would suffer too much, rather the opposite. It was thought that we would improve our work situation and also that our pay rise. At this point, what is clear is that if all else fails it is a cocktail that is very difficult, if not impossible, to overcome.
Ultimately, as good and bad economic cycles will persist, which we must realize is that our mortgage will remain “alive” in many of these cycles and therefore there will be leeway for quedejar when rates will be raised and when our revenues may go through a difficult time, ie, they are somewhat lower than in previous years. But if rates go up together, that you stay in your house arrest and you can not sell or even with a 30% discount, this is not the “save” or “superman”.
The situation we live in today with the Euribor at minimum, no doubt it’s a double edged sword. The risks and the economic difficulties we find ourselves in the future when the Euribor and interest rates go up, not cause any drama in most cases little is made a little foresight and a little exercise to work our family finances with some room for maneuver.