Mortgage interest rates will move by short-term prime rate1

The interest which becomes standard of fluctuation interest type

The housing loan interest which receives influence to business metallurgy molten policy.As for business however we want becoming good, we do not want the interest of housing loan rising?

As for interest type of housing loan it can divide into fluctuation interest type, fixed interest selection and all the period fixed interest types broadly.This time, it will keep trying being attached to those where the interest of fluctuation interest type is influenced.

When the instruction manual of the financial institution is read, you can see the kind of wording where “every year it takes a second look 2 time interest rates April 1st, the short-term prime rate October 1st as a standard”, carefully in explanation of fluctuation interest type.In other words, although you call short-term prime rate, it is to have been linked to the movement.

Short-term prime rate, when the bank lends the money to the company, with the interest under the best conditions, loan period has influence of short term (under 1 years).In other words, it is the interest when it finances to the enterprise which it judges that the bank is superior.Short-term prime rate is decided while looking at cost and the future movement of interest rates which caught in order to supply fund.

Short-term prime rate is influenced in something?

That when you say, whether some kind of interest is related to short-term prime rate it has an influence on the Japanese policy interest.policy interest rate, in one of the bank of japan monetary policy conducted by, hike and cuts have been made due to economic trends. policy interest rate, is determined by the monetary policy meeting. when the policy interest rate changes will be so widely reported in newspapers and news, relatively easy to catch you and information.

that is, short-term prime rate movements and interest rate policy moves, there is a relationship that moves interest rates of floating rate mortgages as a result. short-term prime rate, originally, interest rate is determined for each individual financial institutions. but, in fact are often side-by-side, floating rate of interest (otc interest rate, basic interest rate) same interest rate has been adopted by many financial institutions.

but, floating rate of interest of some financial institutions, there are those that are not linked to short-term prime rate, there is also a mortgage when interest rates are changed without policy interest rates unchanged, let’s check the movement of interest rates on beans.

check the movement of interest rates and floating rate policy

japan is because the zero interest rate, floating rate of interest is also down now why? policy interest rate (uncollateralized overnight call) trends in over-the-counter interest rate and floating rate (excerpt) let’s take a look at the. floating rate of interest is an example of sumitomo mitsui banking corporation.

2006years6month policy interest rate 0.00% variable rate 2.375%
2006years7month policy interest rate 0.25% variable rate 2.375%
2006years10month policy interest rate 0.25% variable rate 2.625%
2007years3month policy interest rate 0.50% variable rate 2.625%
2007years10month policy interest rate 0.50% variable rate 2.875%
2008years10month policy interest rate 0.30% variable rate 2.875%
2008years11month policy interest rate 0.30% variable rate 2.675%
2008years12month policy interest rate 0.10% variable rate 2.675%
2009years1month policy interest rate 0.10% variable rate 2.475%
2010years10month policy interest rate 0.00~0.10% variable rate 2.475%

policy interest rates0%when interest rates variable interest rate over-the-counter type2.375%. that is, floating rate at the time of the zero interest rate2.375%it was. 2010years10month, policy interest rates0.1%floating rate de-2.475%so, after0.1%that there is no room for you know only go down.

it should be noted, floating rate is, principle4month1day, 10month1with respect to the short-term prime rate of the day, years2be reviewed for times, even though the policy interest rate changes, time lag is born until you change the interest rate to floating rate. recently, when the interest rate has fallen is not a principle as, has become the movement to provide low interest rates in early.

possibility of application of the new borrowing interest rates will drop even at a zero interest rate

if you are actually borrowing, rather than over-the-counter interest rate, applicable interest rate will be calculated in. interest rates and apply, after making the cuts is the interest rate prescribed from over-the-counter interest rate. in recent years, minus the whole period1.4%, 1.5%also seen something like that, minus1.5%if the, otc interest rate2.475%the time of the0.975%will be.
width reduction is, each financial institution is specified by, followed by much at the time of borrowing. because it is, you may apply for new borrowing interest rates will drop. already have a better borrowing, if you want to cut to a width is large, it is also possible to lower the interest rate applied by the refinancing.

floating rate of interest is, caught in the policy interest rate movements and news, you can figure out by checking whether you are going to cut how much each financial institution further. floating rate is, let’s check without fail do so because they are vulnerable to direct the impact of interest rate.

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