Finally the mortgage payment is down. Cuts are coming with savings of thousands of euros: here are the latest news.
For some time they had promised that the home mortgage network would be lower and now comes the official announcement behind the rate cut operated by the ECB at the beginning of June 2024. Finally prices will be falling and according to the latest style there will be savings up to 50 thousand euros.
It is true that the mortgage sector is in turmoil, with the US Federal Reserve doing the exact opposite of the ECB, but it is also true that fortunately there were mortgage rate cuts completed on June 6 by the European Central Bank. This is certainly good news, although experts point out that it is very unlikely that there will be further cuts by the end of the year, but things could change with the new year.
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How much to save on your home mortgage with the new rates
The impact that the cuts have had on the mortgage payment on the house is evident. The calculations underline that those who open a mortgage of 200 thousand euros to be paid off in 25 years, will have to pay 1032 euros per month. Only two years ago, however, it was necessary to pay 1212 euros. So we can see how there is a saving of almost 200 euros per month, in practice a monthly difference of 180 euros which translates into an annual saving of 2162 euros.
With these important developments coming from Europe, it is natural that the purchasing power of the Italian population is strengthened. At this point, it is not only necessary to ask the question of when is the right time to ask for a surrogacy, but It is good to understand how much you can save with the new mortgage interest rates compared to the past.
In this sense, therefore, it appears evident that new mortgage holders will be able to benefit from much more favorable conditions compared to a few months ago, this concerns both the variable and fixed rates. Furthermore, experts underline that it is also possible to hope for this news further cuts by June 2025with lower installments than today.
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For a bank loan of 126 thousand euros, one could hope that the monthly installments would drop from 747 to 692 euros on average. It is worth underlining that the installments drop due to various changes within the market, beyond the ECB cuts. Economic growth and inflation also have an impact on variable rates. As regards fixed rates, however, these remain fixed when the contract is stipulated.
