It's called payback to the gradual devolution of a debt. The capital is repaid, therefore, the amount of the mortgage that the client has already returned to the financial institution.

Fee repayments

The fee is the amount that is paid to the financial institution, usually a monthly basis, in order to repay the capital borrowed. It consists of two parts: one for interest and amortization of the other capital. The depreciation rate is, therefore, the amount of capital paid to the financial institution to reduce the debt overhang.

Depending on the type of mortgage repayment chosen for each, vary the portion of the fee consisting of interest and the repayment of capital.

Indexes reference

The benchmarks are the percentages that are used to update the mortgages with variable rate. These rates vary continuously and interest rates are usually reviewed every year.

At present, rates have increased its value to cause a rise in interest rates. . This involves increasing the amount of the fee or extend the maturity of the mortgage.

This involves increasing the amount of the fee or extend the maturity of the mortgage.

Euribor

Its name comes from the acronym for the European interbank offered rate. This is a set interest rate applied to transactions between banks of the member countries of the European Union.

The reference rate is calculated through price bids performing loans among themselves major European banks.

His review and publication are performed daily. In the case of Spain Euribor variations are reflected in the Official State Bulletin (BOE).

Variation of benchmark indices

Changes in the values of Euribor or other benchmarks, are solved by financial institutions in two ways:

·  Increasing the amount of quota: which covers the rise in interest without changing the required time limit for repayment of the mortgage.

·  Extending the repayment period: to raise interest and having to maintain the quota steady, add new fees and extended the deadline.