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Month End Euribor Increase Expected
The Euribor rate, the basis of most mortgage repayments in Spain, is expected to grow to 2.1% by the end of the month.
This increased figure is expected to result in a average of 600 Euros per year more for families at a time when the country's economic crisis means that money is already tight.
An average 150'000 Euro mortgage taken over a 25 year term will now cost an additional 49 Euros per month to repay.
August's month-end forecast of 2.1% rate is much greater than the 1.421% at the end August 2010, but is slightly better than the 2.183% as it stood at the end of July.
The Euribor rate increases when the cost of inter-bank lending escalates.
Click Here to read more about the Euribor, what it is, and how it is calculated.
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