Types of mortgages

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When buying a house, something we must know before venturing into it are the different types of mortgages that the market offers us and how we have to request them at banks. It is very important that you know, before placing the order, what are the characteristics of these products, as well as the advantages and disadvantages of this type of mortgage.

You should pay attention that one of the most important things you will do throughout your lifeIt is about signing a mortgage and you should know everything related to them. At the same time you should try to be better informed than you about prices and appraisals so as not to have problems in the future.

Given how complicated it is and how many things to pay attention to in mortgages, we wanted to teach you to know everything you need to know about them. the characteristics of each mortgage, as well as the offers offered by banks.

What mortgages exist according to their interest rate?

Fixed-term mortgages

What type of mortgages are the most popular product in this market y es probable que be uno de los primeros ofrecidos para que su tasa de interés no cambie con los años; Esto significa que se debe pagar la misma cantidad de dinero mientras tengamos la hipoteca. Puesto que tiene muchas instalaciones, es un type of mortgage that more people have every year. These types of fixed-interest loans are also much shorter in time, since they only have to be paid around 20 years, unlike normal mortgages that can have a term of up to 40.

Variable rate mortgage

The variable rate mortgage is another of the most recognized mortgages. In this circumstance, the monthly installments that must be paid vary according to the mortgage reference. In Spain, the one that carries the most weight and by which most banks are guided is the Euribor.
If we take a look at the mortgage lists of this country, most mortgages correspond to this type of variable mortgage, being only a fixed interest of the 7%.

Mixed-rate mortgages

In mixed-rate mortgages, both interest rates must be known, since both are combined with each other. In this circumstance, the fixed and variable interest rate makes the mortgage interest vary depending on the Euribor reference or through a fixed interest rate that you can agree on with the bank with which you will get the mortgage.

The different mortgages according to the type of installment they present

At the same time of the interest rate, when it comes to Get a mortgage with your trusted bank, you should know the mortgages by the type of installment. These are the main mortgages according to the type of installment that must be known. You should think about the future when selecting the one that best suits you, while assessing your current situation. If you are not sure what type of mortgage payment that you should obtain, you can contact your trusted bank that will be able to recommend the best option.

Types of mortgages and the advantages of each

Fixed-term mortgage

Una de las hipotecas más demandadas por persons what They seek to obtain a mortgage loan are fixed-term mortgages In this type of mortgage, the monthly payments are based on a part of the interest and another part of the requested interest. When you start to pay this type of mortgages the interests are very high, despite everything over time the monthly amount to be paid goes down, depending on the amortization of the principal.
After many years, the situation is completely reversed and people end up paying a very small amount, at the same time of having most of the mortgage already paid.

Mortgages with armored installments

These Armored installment mortgages are another type of mortgage in high demand but a little more complicated to obtain. In this type of installments, it is necessary to pay attention that the same amount of interest will always be paid, regardless of what happens with the interests externally or changes in the economy. However, it has a negative part and that is that based on changes in external interest, the amount of commissions that must be paid if they change.

Mortgages with final payment

On the other hand, last-installment mortgages are mortgages in which a part of the principal that is requested to be paid in the last installment of the loan remains. This amount is given based on 30%. These types of mortgages are not so popular, since a large final payment is needed in the last installment that, if we do not have that money, can cause delinquency problems or you can even lose the house if you do not have the amount. settled down.

Increase in installment mortgages

At increase installment mortgagesYou have to pay attention that the percentage grows as the years go by and also increases as interest rates change. It is a type of mortgage credit that people avoid since it does not have many benefits, but it does have many expenses.

Interest-only mortgages

East The types of mortgages are very little known in Spain. even if they are made by people who come from other countries to this. Here, month after month only interest is paid and nothing is reduced from the total amount of the house; Regardless, once each month is completed, the full amount of principal must be paid or you can choose to market the home to pay off that debt.

The different mortgages according to the type of property and personalized mortgages

There are also personalized mortgages for each type of person or mortgages on the type of property. These types of mortgages are very popular with people who have already tried to get a mortgage but have been rejected.

Mortgages according to the type of property you want to buy. These types of mortgages are used to buy bank floors or official protection floors, also called VPO. This type of mortgages is also used for the purchase of urban or rustic goods. They are used mainly in the cases of mortgages to buy land or to obtain a first home when there are not many alternatives. In some cases, they can also be used to finance a second home.

Custom mortgages

In the latter case and when we have been in a bank for a long time, we can ask a kind of personalized mortgage para obtener la casa de nuestros sueños. Este tipo de hipotecas se otorgan en función del perfil de la persona que lo solicita y se intenta que el monto mensual sea el que el client puede pagar y no el que estipule el banco.

Is a type of mortgage highly required by young people to be able to find the most advantageous quotas in the market and to be able to face the quotas even when the salary is low.

In this type of mortgages, you can also obtain mortgages for non-residents so that they can opt for a home without conditions being too demanding.

Before buying a house

Now that you know what type of mortgage is best for you, you should also know a few things before you apply.

• Have some savings. Even though banks regularly finance the 100% of mortgages, the procedures that originate are not financed by these banks and must be considered so as not to lose money later.
• We must know the real price of the house that we are going to buy. It is essential that you know everything related to the prices in the area you want to buy, as well as the notarial fees and some extras, in order to have a general idea of the amount you should ask for in your mortgage or to know if the price is too high. far from what you can really afford. To find out at 100%, what you should do is examine the type of soil and the value of other houses in the area.
• In summary and in order to obtain a house as close as possible to our dreams, we must have a clean credit history, avoiding breaches. At the same time, it is mandatory to have a monthly income amount on the basis of which the fees to be paid month to month will be based.