This guide will explain how to calculate the value of the variable rate on mortgages, those where rates vary from month to month. These loans are usually linked to an index which determines the proportion of the rate in question. Procedure is not difficult, but especially if you are not an expert, carefully followed all the steps and worked quietly to avoid any mistakes.

The documents you will need the mortgage and the payment declaration. Pay special attention to the Loan Agreement, which lists all of the details for the calculation of floating rate and its related regulations. It then looks for entries that indicate the value of the margin and index. The margin is a fixed number that will need to add the same index in order to determine the rate. For example, if the margin is 3%, you will have to charge the amount to the share of variable rate.


At this point, you must enter the date of adjustment. These are definitely in the Loan Agreement. Will also be indicated in the section on the frequency with which the rate will continue to be valid. Many variable rate mortgages have a certain period of time after which it is no longer possible validation, thus passing to a type of adjustment monthly. Look at your index and then add to it the value of margin. In this way you will have the value of the new rate . Some calculators have the function of automatic calculation of this value. In this case you will have to enter all the required information, or the full balance of the mortgage, the variable rate and the duration and press OK.

Remember that the index and margin values ​​are always expressed as a numerical value. The margin , in particular, is a fixed rate specific for your loan, which must be added to the index to find the proportion of variability. The moment proceed to determine the index and search its current value, you can calculate more easily with the help of newspapers economy, which publish daily the various rates. So stay up to date, as the indexes change every month. When you add up the margin and the index must also ensure that new rate not less than the basic fee. Remember that the most adjustable rate mortgages changes periodically (usually every month ), so you’ll need to recalculate every time this regulation.