Posted by: Bod AtoUpdated at : 12:30 AM
Tags: MORTGAGE LOANS
Types of mortgages - Currently, the supply of mortgages is quite wide, and financial institutions tend to use different names to call di...
Types of mortgages - Currently, the supply of mortgages is quite wide, and financial institutions tend to use different names to call different types of mortgages and so attract the attention of your customers. Still, could summarize all of them in four types of mortgages: fixed-interest, variable interest, interest mixed and fixed fee. Let's take a look at each of them in more detail:
Variable rate mortgages
In these mortgages interest rate is variable and changes at a time or period established in the loan agreement, usually every 12 months. Thus we can benefit from low rates periods and will be handicapped when interest rates rise.
Initially agreed an initial interest rate, which will be valid for the first time and which is usually between 6 and 12 months. After this initial period, the interest rate varies according to the evolution of an agreed benchmark, usually the Euribor, to which is added a differential. The difference can be positive or negative, for example: + 0.25 points - 0.50 points, + 1, etc... The interest rate, therefore, varies with the changes in the market.
Deadlines for these types of mortgages are usually higher, between 25 and 30 years, with what the fee to be paid is reduced, and the early repayment fees are lower. Due to this long time period in which we can not see affected by high interest rates is greater.
Variable rate mortgages
In these mortgages interest rate is variable and changes at a time or period established in the loan agreement, usually every 12 months. Thus we can benefit from low rates periods and will be handicapped when interest rates rise.
Initially agreed an initial interest rate, which will be valid for the first time and which is usually between 6 and 12 months. After this initial period, the interest rate varies according to the evolution of an agreed benchmark, usually the Euribor, to which is added a differential. The difference can be positive or negative, for example: + 0.25 points - 0.50 points, + 1, etc... The interest rate, therefore, varies with the changes in the market.
Deadlines for these types of mortgages are usually higher, between 25 and 30 years, with what the fee to be paid is reduced, and the early repayment fees are lower. Due to this long time period in which we can not see affected by high interest rates is greater.
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Title : Types of Mortgages
Description : Types of mortgages - Currently, the supply of mortgages is quite wide, and financial institutions tend to use different names to call di...
Description : Types of mortgages - Currently, the supply of mortgages is quite wide, and financial institutions tend to use different names to call di...