This is the preferred form, offering the security and flexibility with modular option. The maximum duration of fixed-rate home loan is 40 years. It is possible in some cases to obtain a total funding (including notary fees).
The loan rate is set at the signing of the loan agreement and will not change unless you renegotiate your credit or if you repay the advance.
Fixed rates are indexed OAT (fungible Treasury bonds) ten years the bonds of the French state in 10 years.
The main advantage of fixed rate security. You know from the outset the amount of your monthly payments and the total cost of credit and, regardless of market developments, the rate and duration of the loan will not change (unless you choose an adjustable loan).
You can manage your budget more efficiently.
In return, you do not take advantage of possible rate cuts and may end up paying too much interest in relation to market conditions.
In addition, the interest rate is higher than for a variable rate loan. Today, on average, there was a difference of 1.5 points between the two variable rates “pure” (without cap) and 1 point with reviewable capped rates.
Home loan rate varies according to:
The loan period.
Over the loan period is long, and the rate will be high. Currently, the difference between long durations rate (30) and the rate of short-term (10 years) is about 1%.
The personal contribution
The personal contribution can vary the rate of approximately 0.10% to 0.20%. To get a good fixed rate, it is especially preferable to have the adequate intake to fund legal fees.
The geographical area
Given the regionalized structure of banks, there may be slight differences between the two regions
Your personal profile
The age, occupation, income etc … are variables that can intervene in the calculation of the fixed rate.