It is one of the most important values for any mortgage holder and a reason to fall asleep or not in many homes: Euribor is the interest rate with which most variable mortgages are associated in Europe. AND Its fluctuation can lead us to pay more or less each month: we will show you how to know the daily value of Euribor and how to calculate the amount of your mortgage if you have an interest update.
When applying for a mortgage, and beyond all the work of saving for the down payment, you must make a key decision for the future: fixed or variable duration? With interest rates rising to calm inflation, the current trend is downward towards fixed interest rates, but a good portion of today’s mortgages continue to update their interest with variable rates. And Euribor has a lot to say.
What is Euribor and why is it important for a variable mortgage
Example of mortgage amortization
The benchmark index published daily is the one that most European banks use to trade with each other. Euribor is an acronym that comes from “Interbank rate offered in dollars», the interest rate at which interbank transactions are carried out, including mortgage loans. But not all: when joining the bank, the entity can offer us loans according to other benchmarks, such as those based on market returns.
For those of us who opt for a mortgage with a benchmark based on the Euribor, and who also opt for variable interest discounting, we usually have this Euribor in our sights because will mark the increase or decrease in the monthly amount of interest. Reviews are usually carried out every six months, although it all depends on what we have signed with the mortgage.
The bank will apply the current Euribor when it is your turn to review the mortgage interest, usually every six months. The index chosen is generally the twelve-month Euribor
It is important to know the daily fluctuations of Euribor, but it is not the only thing necessary to recalculate interest: the index that banks usually take for their mortgage loans is usually the value of the twelve-month Euribor, an average of the fluctuation of the index over the last year (the six-month Euribor, that of one month or another, can also be used). The 12-month Euribor generally does not deviate too far from the daily Euribor. And it is appropriate to follow it because by knowing its evolution, we will have a global vision of what we will have to pay in the future.
And how is a mortgage payment calculated? Imagine it’s like a cooking recipe.
- You need the 12 month Euribor (the main ingredient that changes the price), the differential (a fixed surcharge that the bank adds and which can vary depending on the products you buy) and the outstanding capital (what you still owe).
- You add the Euribor and the differential to get the total interest.
- You divide this interest by 12 (the months of the year) and multiply it by the unpaid capital: this is the interest you will pay that month.
- Add the portion that you amortize of the capital (what you reduce from your debt) and you will obtain the full monthly payment.
The operation is simplified and does not reflect all the added aspects that may influence the calculation, such as penalties or services incorporated by the entity and that were contracted with the mortgage. You have to consider this.
How to have a daily alert with the Euribor value
Google Assistant Daily Alert
We already know what Euribor is, how the reference is taken, which one is used and How are the monthly payments of a variable mortgage applied?. Now it’s time to know how to configure alerts on our Android to know the daily interest rate. For this task we will use the mobile assistant itself from applications.
We will start with the application EuriborRates and mortgages. Simple, free, with key information well presented, it includes a mortgage calculator with which you can find out your next payments and is only overshadowed by certain advertisements. You can download the app from here.
Another quick and easy way to consult the index is to go to the Euribor Diario page, one of the references. You can save it as a favorite on your mobile computer to know the fluctuations in just one click.
You don’t want to install anything and would like to receive a daily alert on your phone? Google Assistant can help (if you have Gemini installed, the routine may give you problems).
- Go to your mobile settings and type “Google”.
- Go to the “All Services” tab and select “Search, Assistant & Voice”.
- Select “Google Assistant” and scroll down to “Routines.”
- Click “New” at the top right.
- Choose “Personal” and click “Add Activator”.
- Tap “At a specific time” and set the alert time. For example, every day it rings at noon (Euribor is updated Monday to Friday at 11 a.m.). Additionally, you can add a desktop shortcut to know the data by clicking the icon. When you’re done, save the process.
- Now go to “Actions”, “Add Action” and click “Try adding your own commands”.
- Write for example “What is the daily Euribor”. If your mortgage has a different index, you can specify this. Tap “Done” when you’re done.
- Now it’s time to click “Play on”. Choose “Don’t play media” so the alert doesn’t sound and appears as a Google Assistant notification on your phone.
- Finally, click “Save” and you will have created your routine with the Euribor alert.
This is a somewhat tedious process that works quite well once you create a routine. And it will help you know the information you need on your mobile, quickly and without having to install any applications: Google Assistant comes standard on your Android.
Cover image | Modified mid-term
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