Korkopisteet

Korkopisteet, often translated as "interest points" or "points of interest," is a Finnish term used in the context of mortgages and other loans. It refers to the additional percentage added to a base interest rate, such as the Euribor, to determine the final interest rate applied to the loan.

Essentially, when a loan agreement specifies a variable interest rate, it is usually composed of two parts: a reference rate and a margin. The reference rate is a benchmark rate, like the 3-month or 12-month Euribor, which fluctuates based on market conditions. The korkopisteet represent the fixed margin that the lender adds to this reference rate. For example, if the 12-month Euribor is at 3.5% and the korkopisteet are 1%, the total interest rate on the loan would be 4.5%.

These korkopisteet are determined by the lender based on various factors, including the borrower's creditworthiness, the loan amount, the loan term, and the lender's risk assessment. They are a crucial component in calculating the monthly repayment amounts for a mortgage or other forms of credit. Changes in the reference rate will affect the total interest paid, while the korkopisteet generally remain constant for the duration of the loan unless otherwise specified in the contract. Understanding korkopisteet is essential for borrowers to fully grasp the costs associated with their loans.