Euribor Rates Set to Provide Continued Savings on Home Loan Payments in 2025
Euribor rates are expected to end 2024 at much lower levels compared to the beginning of the year, resulting in substantial savings on interest payments for housing loans and a faster reduction in the principal balance of existing loans. While the impact on the principal repayment might not be immediately noticeable to borrowers, it plays a key role in cushioning against potential interest rate hikes in the future.
For example, a 150,000-euro mortgage over 30 years, tied to the 12-month Euribor with a 1% spread, will see a decrease of about 108 euros in monthly payments, reducing the payment to approximately 668 euros per month. This reduction offers significant financial relief for homeowners.
