TIN y TAE

The TIN (nominal interest rate) is the annual price the bank charges for lending the money, nothing more. The TAE (APR) adds to the TIN the fees and the effect of linked products, expressing the real annual cost of the loan: it is the figure to use when comparing offers. A typical example: a mortgage with a low TIN but compulsory life and home insurance can end up more expensive than one with a higher TIN and no ties — the APR reveals it. On variable mortgages the APR is only indicative ('variable APR'), because it assumes the Euribor will not change over the life of the loan. Each bank's FEIN shows both figures in the same boxes, allowing rigorous comparison before choosing.