mutuo a rimborso libero

English translation: see below

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Italian term or phrase:mutuo a rimborso libero
English translation:see below
Entered by: Heather Phillips

13:51 Nov 29, 2009
Italian to English translations [PRO]
Bus/Financial - Finance (general) / power of attorney re. mortgage loan
Italian term or phrase: mutuo a rimborso libero
I know that this is a loan in which only interest is repaid and the capital needs to be repaid separately - like an endowment mortgage? I cannot find any English translation for this term on the Internet - is it an endowment loan? Thanks to everybody for confirming this or else explaining what it actually is.
Heather Phillips
United Kingdom
Local time: 15:23
see below
Explanation:
adjustable-rate mortgages with repayment of the capital = mutuo al tasso variabile con rimborso libero del capitale

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Note added at 46 mins (2009-11-29 14:38:18 GMT)
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If you buy property, you can take out a variable rate mortgage (also called adjustable rate mortgage), i.e., the interest rate is regularly adjusted based on or pegged to a certain market index - e.g. Prime Rate, LIBOR. The repayment of the mortgage will have two components: the repayment of the capital borrowed and the interest on the loan. The amortization is characterised by a constant repayment of the capital borrowed. In the case of a direct amortization, the amount of the interest (and the debt of the mortgage) is reduced every year. One of the advantages is that you can potentially benefit from falls in general level of interest rates on the capital markets (but there is a higher risk for the borrower if interest rates rise, of course). Adjustable rates are typically used when fixed rate funding is difficult to get or when it is too expensive.
Selected response from:

Erika Nagy, Esq.
Local time: 10:23
Grading comment
A nice explanation, thanks!
4 KudoZ points were awarded for this answer



Summary of answers provided
3interest only mortgage
ChrisJude
3see below
Erika Nagy, Esq.


Discussion entries: 1





  

Answers


30 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
see below


Explanation:
adjustable-rate mortgages with repayment of the capital = mutuo al tasso variabile con rimborso libero del capitale

--------------------------------------------------
Note added at 46 mins (2009-11-29 14:38:18 GMT)
--------------------------------------------------

If you buy property, you can take out a variable rate mortgage (also called adjustable rate mortgage), i.e., the interest rate is regularly adjusted based on or pegged to a certain market index - e.g. Prime Rate, LIBOR. The repayment of the mortgage will have two components: the repayment of the capital borrowed and the interest on the loan. The amortization is characterised by a constant repayment of the capital borrowed. In the case of a direct amortization, the amount of the interest (and the debt of the mortgage) is reduced every year. One of the advantages is that you can potentially benefit from falls in general level of interest rates on the capital markets (but there is a higher risk for the borrower if interest rates rise, of course). Adjustable rates are typically used when fixed rate funding is difficult to get or when it is too expensive.

Erika Nagy, Esq.
Local time: 10:23
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in HungarianHungarian
PRO pts in category: 12
Grading comment
A nice explanation, thanks!
Notes to answerer
Asker: Many thanks Erika, your explanation was very helpful although I'm still not certain of the exact English equivalent.

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1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
interest only mortgage


Explanation:
This is a term I have heard used in the sector.

ChrisJude
Italy
Local time: 16:23
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 20
Notes to answerer
Asker: Thanks for your contribution Chris, to be honest I'm still not sure exactly what this is but selected Erika's answer because it contained a long explanation and seems to fit.

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