The TIN (Tipo de Interés Nominal,) or Nominal Interest Rate, is the percentage the bank charges for a mortgage or loan, excluding any additional associated costs. It is expressed as an annual percentage. For example, if you take out a mortgage in Spain of €100,000 at a 3% TIN, you will pay €3,000 per year in interest alone.
While the TIN is straightforward and easy to understand, it is more important to consider the TAE or APRThe TAE or APR (Annual Percentage Rate) is the most important interest indicator to consider when comparing mortgages (or any type of loan) in Spain. The formula, regulated by the Bank of Spain, combi... More (Annual Percentage Rate), which includes other costs related to the loan, such as fees, insurance, and the frequency of payments.
