What is a variable rate mortgage?

A variable rate mortgage is a type of financing that is based on an interest rate not fixed but varies according to the parameters of financial and currency market. This interest rate is subject to enormous variations in the basis of these parameters and does not ensure economic stability to the installment to be paid monthly.

In the event of a positive trend of the market rate may be good, but during periods of bad markets and exchanges rates can exceed even the 8 or 9 percentage points on the loan.

The variable rate of the loan is characterized by the value Euribor, a stock market value of which determines the lowering or raising interest rates.

The variable rate mortgage is currently less than required by Italian families in proportion to the whole and considering the current market conditions is certainly not very profitable because more than the average fixed rate offered by major banks which is 5.75%.