The Euribor index remains below zero at the end of the year and lowers mortgages by 76 euros

The Euribor index remains below zero at the end of the year and lowers mortgages by 76 euros

  • It is the most used indicator to calculate mortgages in Spain.
  • The final data will be confirmed by the Bank of Spain next Monday.
Edificio

The twelve-month Euribor is the most commonly used indicator to calculate mortgages. EUROPE PRESS

The 12-month Euribor will close the year at historic lows. It has 11 in negative and, predictably and in the absence of the official data offered on Monday by the Bank of Spain, will mark an average rate of -0.080% for December . It is the indicator with which the majority (90%) of mortgages in our country are calculated. And so, sunk and below zero, will save citizens with these loans about 76 euros per year.

However, despite these favorable figures to customers, banks will not have to return, at the moment, any money. Entities always apply a differential in mortgages that must be added to the Euribor , and the lowest that has been sold in general a credit of this type in our country is 0.17 percentage points, reports Efe.

Gone are the days when, at the height of the economic crisis, the Spanish suffered a Euribor of 5.393% : it was in July 2008. This indicator is the price at which banks lend money in the euro zone and directly hangs of the wand of the European Central Bank, which is the one that sets the rates.

Since last March, he keeps them at 0%; its president, Mario Draghi , wants to fight low inflation in this way, and it does not seem that he will change his mind soon, since in his opinion the measure “works”.

 

“Clauses zero” of the banks

The entities are not comfortable. First, because they lose money. That is why they have made imaginative decisions – aside from raising the aforementioned differential – such as the application of the so-called “zero clauses” in variable interest mortgages. What is this? As easy as setting a fixed minimum of 0% for the Euribor. With this the banks make sure that, no matter how much the indicator falls, they will charge for the loan granted.

” It is normal that banks seek to hedge against eventualities that may damage their bottom line, ” he told 20minutes Victoria Torre, head of Content Development, Products and Services Self Bank, “but most importantly transparency the time to hire is total for the customers, “he adds.

It is normal for banks to try to cover themselves against eventualities that may damage their income statement. Secondly, we must remember that the Euribor is in question. “Uncertainty about the integrity of these indices is a source of vulnerability and systemic risk, and can undermine market confidence, seriously harm consumers and investors and distort the real economy,” he wrote this week in an article for the BE Responsible for Resolution and Financial Stability of the National Securities Market Commission (CNMV), María José Gómez Yubero.

Earlier this month, Brussels placed a fine of 485 million euros on three international banks (Credit, HSBC and JP Morgan) for manipulating the index; Barclays, Deutsche Bank, Royal Bank of Scotland and Société Générale had to release another 820 million after recognizing, yes, their fault.

System reform

At the moment, a remodeling of the system that allows us to calculate the Euribor is underway. The aim of the European Money Markets Institute (EMMI), in charge of doing so, is for the calculation to be made from real operations and not from estimates provided by banks, as it has been up to now. It is expected for 2017, although Torre points out that it could be delayed because the entities “are not responding” as expected.

The number of signed mortgages grew 16.8% in October The expert believes that the new Euribor ” could be a much more reliable index of the market situation” and ensures that there is some “hope” in eliminating “some of the distortions “that are given with the indicator in force.

The current situation envisages a possible increase in variable-rate mortgages. Some have been ahead of the events and in October (latest data from the INE) 28.6% of mortgages signed were at fixed interest, 18.9 points more than in the same month of 2015 . The number of signed mortgages grew 16.8%. Something moves, although there is still a way to go.

The banks not only cover their backs now: many mortgaged are still dragging the effects of the floor clauses . On December 21 the European Justice gave them the reason and they will charge the overpaid. Little by little.

Three questions to …

Victoria Torre , responsible for Development of Contents, Products and Services of Self Bank.

How long will the Euribor continue in negative?
I could continue like this if we consider the reasons. First, interest rates are at 0%, and this in the short term will not change. Neither the negative levels (-0.4%) of the deposit facility of the ECB to the banks. And the ECB’s purchasing programs have been a pressure.

Mortgage at fixed or variable rate?
The situation is exceptional, in the medium term it has to reverse. The historical average of the Euribor is around 2%, that should be our reference. The spreads have already risen, so when the rebound begins can be noted in the rise in variable-rate mortgages.

Could banks get to return money?
They could in some cases be signed under very advantageous conditions, but in most cases the spreads leave a sufficient cushion for the entities.

Enjoying Incredible Profit And Much More Through Stock Assault Second

Enjoying Incredible Profit And Much More Through Stock Assault Second

Used people making lots of money by purchasing stocks. So, have you ever wondered how people make money along with trading stocks? Well, it needs plenty of knowledge of the stock market.

Within a crazy market like the market, don’t buy on worth. Today’s stock market is up plus down up and down. It’s dangerous to hold for too long at this point unless you buy to hold for approximately 30 years, chances are you will lose. I would recommend sticking to technical analysis whenever online stock trading, because of these times, it’s the only sure method to make some money in this market.

 

The advantage of these investing platforms

You can find different types of trading platforms. The simple ones just offer fundamental order entry methods that are sufficient for the average investor and investor who areas less than one trade per day. The more advanced ones providing highly sophisticated ways of redirecting your order to different marketplace places. The advantage of these investing platforms lies in their performance speed but the handling demands some experience. Day investors who execute up to numerous trades per day are using this kind of direct access trading platforms.

To help you with all your requirements in education online business, you might want to consider purchasing an online investment trading software. Look for software that may provide technical graphics, current quotes background info on the businesses you are looking at.

You will usually encounter some trades that will show far more promise compared to others so put more income there and lesser funds into weaker trades. That which you must never do is usually follow a trade without knowing whether or not it will work or not. Naturally, there will be times when an apparently unworkable trade will shift unpredictably and prove a person wrong but that is just a part of your learning encounter to making better decisions within how to invest in stocks online. Instead of giving up upon making right decisions, you need to refine your technique trying to understand why this happened.

Because of the large number, a few vendors offer free education and learning online trading. They fundamentally give you a briefing on what your own cd investment calculator is all about. They could furthermore give some tips on an effective strategy. But the drawback will be, it is only in theory they can help you.

Invest in mutual funds

There are those who would think Exchange traded funds had been similar to mutual funds. These are certainly not & significant variations among the two. As such, the way you invest in mutual funds should differ from the one you spend money on Exchange traded funds. People who question the particulars showing how to invest in ETFs, here is a brief look at the process.

In case you are starting out trading, don’t let these types of stock market orders frighten a person. Once you get the hang of those, especially after signed up for some virtual trading accounts, it could make a difference to your profit plus loss trading account. Everything comes down to your stock trading techniques and what you are trying to achieve.

 
 
Science to carry

# # # By Juan Margalef Roig, Enrique Outerelo Domínguez and Salvador Miret Artés *

Can you sell what you do not have? In financial economics; yes. Selling short (or short) means selling securities that are not owned.

An investor can borrow, in exchange for the payment of a ‘rent’ (or premium), shares to another investor … and obtain significant benefits from this operation .

Suppose that our investor becomes ‘bearish’ with respect to the shares of a company; that is, it has the sensation or intuition that the action of a certain company will fall within a reasonable period of time. Through its broker, you can borrow 20,000 shares of that company from another investor to sell them immediately afterwards.

Author: Alberto Carrasco-Casado

Let us also suppose that at the time of this operation the stock is quoted at 13 euros and that, a few weeks later, according to the expectations of our investor, the price drops to 9 euros. At that time, you can undo the position; that is, buy 20,000 shares and return them to whoever had left them on loan.

If we consider that at that time the company has distributed a dividend of 1 euro per share, which the owner of the securities must receive, we can calculate the profit of the operation. Leaving aside the management expenses (agent commissions and the ‘rent’ of the shares) the profit is 20,000 x 13 – 20,000 x 9 – 20,000 x 1 = 60,000 euros.

This practice, common in the financial world, is regulated in Spain by the National Securities Market Commission (CNMV). The organization requires investors sufficient guarantees to cover all steps of the operation (especially, provided by other investors), which are returned with their interests at the end of the process.

If the stock, instead of falling, increases in price, the broker, following the regulations of the CNMV, will ask for more guarantees to the investor or will undo the position immediately. If the stock is unpaid at 15 euros, the investor’s losses will be: 20,000 x 13 – 20,000 x 15 – 20,000 x 1 = – 60,000 euros (the negative sign means losses).

The ‘bearish’ scenario could have been imagined or intuited, for example, by the actions of Spanish banks due to the Greek crisis of last July. So it was.

Source: www.tOrange.us

The same idea underlies the speculation known as ‘attack on a coin’ which is supposed to be a weak currency. Without wanting to give names of people or groups of people who have done it, we will briefly describe this scenario. The speculator, without departing from the regulations of country M or international regulations, asks for a loan from the currency of country M. Immediately after receiving the loan, he changes it to dollars or any other ‘strong’ currency that is chosen to operate . This last operation takes place within the financial system of country M, therefore the currency reserve of M decreases. This operation is repeated 4, 5 or 6 times in a short time, decreasing more and more the currency reserve of country M and, sometimes, in a generalized environment of rumors and signs of devaluation. When the devaluation expected by the speculator arrives, he returns the loans in the M currency, which, being devalued, leaves him an important benefit.

Let’s see this procedure with an example. The speculator will receive five successive loans of 200 million coins of M; and it will change each one of them with the following type of change: the first, 100 coins of M for 1 dollar; the second, 105 by 1; the third, 110 by 1; the fourth, 120 by 1; and the fifth, 125 for 1. Without counting the interest and the expenses of currency exchange, the speculator owes 1,000 million coins of M and will have in his possession 8,989,610.39 dollars. Suppose that after the official devaluation in M, the change is 150 M coins for 1 dollar. Then our individual will change $ 6,666,666.67 to obtain the 1,000 million M currency with which to repay their loans, and will retain a profit of $ 2,322,943.72.

 

* Juan Margalef Roig and Salvador Miret Artés are researchers from the CSIC at the Institute of Fundamental Physics. Enrique Outerelo Domínguez is a professor at the Complutense University of Madrid. The three are authors of the four volumes of the work Probability and Economics (Sanz and Torres).

 

About Mar Gulis:

#Bajo the collective name of Mar Gulis (in tribute to the great researcher and disseminator #
 
 

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News Reduce heating costs: “A lot can be achieved with little effort”

News Reduce heating costs: “A lot can be achieved with little effort”

finanzen.de News always well informed

Wednesday, 24.01.18 , written by Anja Schlicht Proper heating needs to be learned. But how should consumers know if their needs are too high? Heating mirrors help to get a feel for the heating level in Germany or a region. However, if homeowners want to make their four walls more climate-friendly with subsidies, they face a “funding jungle,” says Tanja Loitz, managing director of co2online. >

Heizkosten senken: Smarte Technologien haben viel Energiesparpotenzial

Tanja Loitz from co2online (Source: www.co2online.de / Phil Dera)

By improper ventilation or radiators delivered owners and tenants pay each year too much money for a warm home. However, the greatest heat loss causes a bad energetic state of the house , explains Tanja Loitz. She is managing director of co2online. For example, the non-profit climate protection consultancy provides consumers with heating mirrors that enable them to assess their behavior and consumption.

In an interview with finanzen.de, Tanja Loitz explains how residents can reduce their heating costs , what potential smart technologies have for saving energy and why homeowners give away subsidies if they want to improve the energy-related state of their home.

Where do you get the data for the respective heating mirrors?

Tanja Loitz: The heating mirrors are calculated on the basis of real consumption data of residential buildings. In other words, the data comes from consumers who use our interactive energy-saving checks and enter their heating billing there, for example. All registered values ​​are collected anonymously in our building database and then evaluated. For the heating mirror for Germany in 2017 , there were around 60,000 building data of centrally heated residential buildings from all over Germany.

How can people find out the reasonable cost of heating if there is no current heating mirror for their city or municipality?

Tanja Loitz: If there is no regional heating mirror, consumers can also evaluate the heating energy consumption and the heating costs of their dwelling with the heating mirror for Germany. That’s a first good orientation.

Anyone familiar with the year of construction of their home will get a more accurate result with the heating mirrors according to building construction years – because these heating mirror versions take into account that older buildings require on average more heating energy than newer buildings because the stricter requirements for energy consumption apply.

Incidentally, the regional differences in heating energy consumption have many causes. One of these is the weather – of course, this is quite different on the coast than in the mountains. Therefore, regional evaluations of energy consumption are more accurate than transregional ones.

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What, in your experience, causes the greatest amount of heat loss in an apartment or house?

Tanja Loitz: The biggest heat losses are caused by a bad energetic condition of the building, for example by missing insulation or leaking windows and doors . Overheating or improper ventilation can also increase consumption and heating costs considerably.

Here can be a lot of effort with little effort. A sealing tape for ten windows, for example, only costs around 25 euros. Consumers sealing their windows can then save more than 1,000 kilowatt-hours and 80 euros each year in an average 125-square-foot house. Anyone who bumps several times a day, instead of permanently tilting the windows, can even save up to 170 euros a year.

Assess own heating consumption

Consumers can see the current heating level for Germany under #. Accordingly, the cost range for a 70 square meter apartment is between 550 and 1,200 euros per year.

What tips do you have for homeowners?

Tanja Loitz: Homeowners should in any case check whether the heating pipes are insulated , whether a pump exchange is worthwhile and whether their heating system is optimally adjusted. Because many heating systems do not run efficiently, because a hydraulic balancing is missing. In the next step, owners should also seek advice from an energy consultant and discuss the costs and benefits of energy-efficient modernization of the entire building together with them – in many cases, the greatest savings potential can be found here.

Thanks to smart technologies, radiators can now be conveniently controlled via an app on a mobile phone or tablet. But the acquisition costs for the technology are not exactly low. What potential do you see in smart heating?

Tanja Loitz: There is a lot of energy-saving potential in smart technologies – how much that exactly depends, of course, on the individual case. On average, ten percent are realistic in our view . The biggest advantage is that the heating can be adjusted exactly according to the needs of the occupants. It is always heated only when it should be warm. And only as much as necessary. Of course, this is much more efficient than heating, whether it’s home or not. In addition, the comfort can be increased , even with relatively simple and affordable programmable thermostats.

In addition, users with smart helpers can better observe how much heating energy they consume . Only those who know how much energy they use and what their costs are is motivated to save money. In addition, waste and heating defects are detected faster – and not only after the next billing.

The government supports consumers who want to optimize their heating system through different programs. What is your experience: Do owners know what grants you are entitled to?

Tanja Loitz: Unfortunately, in many cases, potential is given away . For a homeowner, it is almost impossible to find all the support programs without help. That’s why we often talk about a funding jungle .

There are not only federal programs but also countries. Added to this are municipal subsidies and even subsidies from energy providers and manufacturers. Who should keep track? We therefore recommend not only our free FördermittelCheck, but also always a conversation with an energy consultant on site in case of extensive renovation projects.

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