A French Mortgage interest rate for a variable loan is usually pegged to the current Euribor rate (the rate the French Mortgage provider borrows at – which is set by the European Central Bank) plus the French Mortgage provider’s margin, which can vary from around 1.2% – 2% depending on the amount of down-payment, size of loan , and the lending criteria of the French Bank.

French Mortgage interest rates will also vary depending on the type of loan, interest only and fixed rates are generally higher than the variable rate.

Check with an Independent French Mortgage Broker in France like French Mortgage Xpress on the current French Mortgage interest rates available. Make sure you understand all penalties associated with switching from one type of French Mortgage to another.

Euribor is short for ‘Euro Interbank Offered Rate’. The Euribor rates are based on the average interest rates at which a panel of more than 50 European banks borrow funds from one another. There are different maturities ranging from one week to one year. The rates provide the basis for the price and French Mortgage interest rates in the Euro zone. Most variable French Mortgages are pegged to the Euribor 3 months, however, in certain cases the French Mortgage provider can opt for the one-month or the one-year rate.

Currently in 2010 these rates used for a French Mortgage are at historical lows. For more information on the Euribor see www.euribor-rates.eu