The rate is the remuneration of the banker who lends to you money.
In exchange of the risk incurs, it will take a percentage of the sums lends to you.
The rate is the central point of your financing. It's on him which your effort of negotiation must focus. To negotiate a fall of rate, even weak, can make you save much money. Attention with the concept of rate fixed, fluctuating rate or wrapped rate.
In general, one distinguishes 2 main categories of rate:
- Fixed rates: The rate is fixed during the signature of the trust deed. It will not vary, what arrive. It is known with advance.
- Fluctuating rates: The rate of the loan n´est not fixed definitively at the firm of the contract but it evolves/moves with the rise as with the fall according to evolution index of reference. It thus evolves/moves during the contract.
- Wrapped rates: mixed one enters the fixed rate and the fluctuating rate.