Que es el tin y el tae
When we go to ask for a loan, we must take into account mainly two things: the Nominal Interest Rate (NIR), which is the price we pay for the borrowed money, and the Annual Percentage Rate (APR), which includes the commissions, the term of the operation and the NIR of the credit we want to apply for. Next, we are going to know all the details of how both concepts affect a loan or mortgage.
The Nominal Interest Rate or NIR is the price we pay for a loan, that is to say, the money we have to pay the bank for the capital borrowed. The NIR is, therefore, a specific percentage of the total amount lent by a bank to establish the parameters of a financial operation such as a mortgage loan. In general, the NIR is calculated on a monthly basis. The NIR should be indicated in any contract for banking products such as deposits, loans, credits or mortgages, since it is the price we are paying for them, as explained in this content of Finance for Mortals.
tin tae euribor
The TIN or nominal rate is, in itself, the interest that a financial entity or lender applies for the service of lending money: it simply indicates how much per cent the bank is going to keep for the transfer of funds.
Each bank is free to apply the NIR it wishes to charge its customers for each type of loan, and this is agreed with the applicant for the loan, mortgage or deposit contract: it therefore reflects the interest payment for the change in the value of money over a period of time.
Mortgage loans are financial products offered by banks for the purpose of financing real estate: financial institutions offer mortgage loans with fixed conditions (with an invariable APR) or variable conditions (with an APR composed of the sum of the EURIBOR and a spread).
The Annual Percentage Rate is the index that reflects the total costs of the loan of funds, i.e.: the interest fixed by the financial entity, the commissions, the management costs or the terms of the operation.
When taking out a personal loan or any other financial product, it is normal that you have seen the acronyms APR and NIR. But do you know their differences? In the following article we reveal them to you.
To know what you will really pay for a loan, a mortgage or any other financial product, you need to know the most basic concepts so you won’t have any doubts when you are negotiating or about to accept. Two of the most common terms are TIN and APR and you need to know the differences.
Starting with TIN (nominal interest rate), it is the fixed percentage that is negotiated as a concept of payment for the money that is lent. It is the one that indicates what percentage the financial institution receives for lending the money.
The NIR is the rate used by banks to reflect the interest payment. This figure indicates the real interests that we are going to pay, to know with total exactitude the amount to return to the bank.
In the case of Euribor, to obtain the monthly TIN it will be necessary to add the Euribor and the differential applied by the bank, to obtain the total amount. Also, it does not include associated expenses, only the interest, which does not have to be annual.
what is tae
In many financial products, such as personal loans, mortgages, deposits or pension plans, the interest rate and/or the APR are mentioned, but what are these acronyms that almost always appear together and that everyone has heard of? What do they calculate? Do they refer to the same parameters?
The answer is no. But it is worth starting at the beginning. The interest rate is the price of money. That is, what you are going to pay the bank in case you borrow an amount, as in a mortgage, or what you are going to get for lending, as in a deposit.
On this basis, the Nominal Interest Rate (NIR) is the money that will be paid or received over a certain period of time, i.e. the life of the financial product. The NIR is usually calculated on a monthly basis.
For example, in the case of a loan, the NIR is the interest that has been agreed with the bank to be paid each month for receiving the money requested. In other words, the monthly payment is made up of the part of the loan that is being repaid to the bank plus the NIR.
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